Bitcoin Records Slowest Block Production in Years Amid China Mining Crackdown

29 June 2021 | Updated: 29 June 2021

Due to the ongoing crackdown of Bitcoin (BTC) miners in China, the rate of newly-minted coins has dropped dramatically to 58 new coins daily, according to a report by Glassnode. Meanwhile, mining revenue has plunged to record lows over the last month, as the Bitcoin community fixates its focus on the upcoming difficulty adjustment.

According to reports, the Bitcoin hashrate has dropped by 40% over the past month. This decline is a direct effect of the intensified crackdown on BTC miners by the Chinese government.

Typically, a new Bitcoin gets mined every ten minutes. However, as of yesterday, the average count was over 23 minutes. This mining time is the highest recorded by the network in over a decade.

Consequently, this drop in the newly-minted BTC count reduced the number of new coins entering the market yesterday. Yesterday’s new Bitcoin count hit 58, compared to the previous average of 144 new coins per day. This count represents a massive 60% decline.

Glassnode also revealed that the average daily revenue received by BTC miners dropped significantly as well. As of April and May, the daily miner revenue peaked at about $70 million. Currently, that figure is at about $13 million.

Bitcoin appears to be on a steady path to recovery as the broader market regains bullish traction. However, the benchmark cryptocurrency continues to stall around the $35k level for a week now.

That said, a sustained break above the $35k resistance should place BTC on a recovery path to $36k, where our 4-hour SMA 200 resides. Failure to clear the $35k psychological resistance could send BTC to the $33k region. Subsequent bearishness from that level should propel the primary cryptocurrency to the $31k pivot point.

Key Bitcoin Levels to Watch — June 29

While BTC miners continue to mount selling pressure on Bitcoin, the benchmark cryptocurrency appears to be holding the fort as bulls keep it near the $35k mark. Bulls have prevented a fall away from the $35,000 level since its rebound from the $30,000 level last Saturday.

BTCUSD – 4-Hour Chart

That said, BTC has to stay around this level over the coming hours or risk falling below the $33,750 support. A successful defense of the $35k mark should open the way to the next resistance target; $36,000.

Meanwhile, our resistance levels are at $35,000, $36,000, and $37,000, and our key support levels are at $33,750, $33,000, and $32,000.

Total Market Capitalization: $1.43 trillion

Bitcoin Market Capitalization: $659 billion

Bitcoin Dominance: 45.9%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.