Bitcoin price hits a 3-month high, and 64 mining farms are to close in China
Bitcoin price hits a 3-month peak
The weighted average Bitcoin price rose above $10,100 for the first time since February.
According to Coinmarketcap, on the night of June 2, BTC price $10,181 — last time such price observed on February 15. At the moment, the cryptocurrency is trading near the level of $10,100, and in 24 hours bitcoin has risen in price by 6%.
Most of the popular crypto assets are also in the green zone: the maximum increase in value was demonstrated by BCH (+ 9.21%), Stellar (+ 8.96%) and LTC (+ 6.99%). Ethereum rose by 5% and came close to $250 for the first time since the end of February. Cryptocurrency market capitalization reached $284.4 billion.
Chinese authorities to close 64 mining farms
After the meeting of Yunnan province officials, it was ordered to shut down 57 illegally operating mining farms that were disguising themselves as Big Data companies. Another 7 facilities under construction must cease working.
The region’s authorities noted the benefits of mining companies that take away excess electricity, but pointed out that many of them come into direct agreements with hydroelectric power plants and evade taxes. Earlier, the local power grid company demanded to stop the illegal energy consumption by miners who connect to the stations bypassing the authorities.
It is reported that some farms have already put up their equipment for sale.
Bitcoin steadily rises in price in May
The principle of traditional markets “sell in May and go away” does not apply to bitcoin, according to analysts at Messari.
Last month, BTC added 9%, slightly higher than the 2020 average of 8.5%. At the same time, in 2019, cryptocurrency in May rose by 54% with an average return of less than 8% per month. And in just 10 years, Bitcoin showed a positive trend in May 8 out of 10 times, while in 6 cases it was higher than the monthly average.
Among classical traders, there is an opinion that in the summer there is no significant growth in the market, so it makes no sense to open long positions until the fall.
