ETF Delay Caused Bitcoin Price Slump? Chinese Crypto Community Beg to Differ
Contrary to the predominant voice in the US that SEC postponing key ETF decision was to blame for Bitcoin's most recent slump, many from the Chinese crypto circle believed otherwise.
A Huoxing24 article offered some alternative perspective. It pointed out the iteration of mining chips might have exacerbated the market pessimism toward BTC, a sentiment apparently resonated with plenty of Chinese investors on the social media.
According to the source, a leaked photo indicated 7nm mining chips would become a standard for Canaan Creatives' mining machine. Shortly afterward, the company announced their Avalon A9 Mining Machine, loaded with the rumored 7nm chip, was under mass production.
The same source implied Bitmain had their hands on the 7nm chip as well. Thus, the two mining giants, which combined to make up over ninety percent of the world's hash power (70% and 22% respectively), would be able to "double their hash rate," pushing the supply to a dangerous degree.
The following screenshot from btcfans.com showed two unusual surges between May 24 to June 6, and July 17 to July 29, when the daily bitcoins mined broke through the 2000 mark, both widely believed to be a glimpse of the power of 7nm chips.
Even though hash power boost would theoretically benefit bitcoin price in the long run, for a mostly speculative crypto market, its short-term outcome could be disastrous.
Such opinion seemed to have a substantial supporter base; some even went so far as to claiming technological advancement led to an avalanche and predicted the price would remain lethargic for a while longer.