Growing concerns over energy usage and the environmental impact of cryptocurrency mining have contributed to the downward trend of cryptocurrency prices for over a month. The market capitalization has halved since an all-time high in April. The current market capitalization stands at around $1.4 trillion against an all-time high of $2.6 trillion.
According to the University of Cambridge, 65% of the world’s Bitcoin mining took place in China. But lately, the Chinese government has been acting strictly against Bitcoin mining.
On Monday, June 21, the Bitcoin prices slumped more than 10% after China banned the mines of Sichuan province. Investors have become skeptical of the prices and are keen on making smaller profits. Bitcoin has been fluctuating between $34k-$41k.
Death Cross warning by experts comes as another scare to the Bitcoin prices. Death Cross is when the short-term average price of the commodity drops below its long-term average. The 50-day moving average is considered as short-term and the 200-day moving average is considered as the long-term moving average for measuring death cross. Death Cross is an indicator of a bear market. Thereby, making investors skeptical of the Bitcoin prices.