China just kicked it up a big notch when it comes to cracking down on crypto in general but also on mining. In the last few hours, the country’s authorities have successively declared that crypto transactions are now illegal and that the crackdown on mining will increase.
Despite the serious crackdown on mining during the spring, the effect on the GPU market has been very limited in time. Indeed, by the end of the summer the signals on the Chinese graphics card market were very bad and unfortunately we could anticipate further tensions and price hikes. This is clearly what we experienced in September. The Chinese government has just passed the second on the repression and the effects on the prices of major cryptos is immediate. The impact of China on transactions but also on mining is so important that it is almost mandatory that effects are quickly felt on the GPU market. Crypto fans will surely argue that a pendulum effect already underway towards other countries will continue and that everything will rebalance; it is no longer unrealistic to think that we could have some beneficial effects on the market by the end of the year.
