Based on China’s recent crackdown on crypto mining, what are the impacts on Bitcoin’s price in the short and long term?
China’s crackdown on crypto mining has led to a short-term drop in global hash rate and temporary supply disruptions. Initially, Bitcoin’s price may experience volatility as miners relocate and adjust operations. In the short term, this uncertainty could push prices lower, perhaps near $60K. Over the long term, however, the decentralization of mining outside China may strengthen Bitcoin’s network and reduce regional risks. Improved global distribution of mining activity could lead to enhanced network security and eventual price stabilization. Investors may see this as an opportunity to accumulate at lower levels, and the market might rebound once supply normalizes. Overall, while short-term volatility is expected, the long-term outlook remains positive due to Bitcoin’s inherent scarcity and decentralized nature.