China vs. Bitcoin: Will we see $100,000?

continues to consolidate in a narrow $41,000 – $43,000 range and shows no clear intentions to break the downtrend. Market participants believe that the potential for a decline in BTC has not yet been exhausted and the major sell-off is likely to resume in the coming days. It should be noted that the message background supports this scenario.

On September 27, major crypto exchanges stopped registering new accounts for users in China. In particular, representatives of the world's leading crypto exchange Binance said that registrations with Chinese mobile numbers are now blocked and the Binance Mobile app is not available for download in this country. Huobi made a similar announcement. Such restrictive measures were the result of Beijing’s recent crackdown on cryptocurrencies.

On September 24, the People’s Bank of China declared all digital coin transactions, including trading, to be illegal. It was also revealed that online trading company Alibaba (NYSE:) intends to ban the sale of devices, software, tutorials and all crypto-related goods and services effective October 8th. Against this backdrop, a number of major mining pools in China have been closed. For example, the largest BTC mining company F2Pool refused to serve miners based in China, and the second largest mining pool ETH Sparkpool announced that it would cease operations by the end of this year.

The number of transactions on the network has been declining since May and is now at multi-year lows. The increase in the number of transactions is usually associated with the bullish sentiment in the market, as it indicates the influx of new participants into the network. A decline in transaction numbers, on the other hand, is a sign of declining interest and a decline in active users. Currently, about 200,000 transactions are being processed daily, which is on par with the 2018 bear market. The main participants in the Bitcoin network are long-term holders who do not want to sell their tokens and still expect the long-term uptrend to restart with BTC/USD rising above $100,000.

Traders' general appetite for risk given the Chinese developer's ongoing debt problems. Evergrande (OTC:) and the potential US debt default continue to weigh on the entire cryptocurrency market. On Monday, Senate Republicans blocked a spending bill proposed by Democrats that could provide funding for government agencies and raise the debt ceiling. The government's current funding expires on October 1st. US Treasury Secretary Janet Yellen says on Tuesday that the government will not be able to meet all of the nation's obligations unless it increases the borrowing limit by October 18. Most likely, Congress will reach an agreement at the very last moment. But until then, investor panic may hit crypto enthusiasts hard. However, Bitcoin is in danger of falling to $30,000 in the coming days, and only then will growth most likely resume.