by Whether the crypto projects facing regulatory scrutiny are willing to play ball with the big Banks.
This is because Wall Street has a significant influence over regulations and history has shown that it has a habit of protecting its own.
That’s why the news that the big banks are not open to financing Bitcoin mining operations was entirely expected.
Institutional investors can’t control Bitcoin the same way they can certain proof-of-stake cryptocurrencies and they really don’t like that.
Institutional investors aren’t really all that concerned about the environmental aspects of Bitcoin, that’s because they know that crypto mining only accounts for 0,05 of the world’s energy use and 0,08 of global emissions.
What the institutions are concerned about is the fact that Bitcoin cannot be governed.
They thought they could exert some influence by investing heavily in Bitcoin Miners and taking the names of influential Bitcoin developers but it looks like they’re starting to realize it’s not that easy.
I suspect this is why the big banks are suddenly reluctant to lend to crypto mining companies.
Then again the real reason for their reluctance could be as simple as the current state of the crypto Market.
There’s no question that many of the anti-crypto politicians present wanted.
This response to regardless the fact of the matter is that the big Banks probably won’t be lending to crypto Miners and that can only mean one thing – capitulation.
We could see crypto miners start to sell their mined coins as credit gets harder to come by and it won’t just be ETH glass node data suggests that we have yet to see significant BTC selling from Bitcoin miners.
This is consistent with Bitcoin’s Hash rate which continues to hit all-time highs despite the decline in BTC’s price.
Historically Bitcoin’s hash rate has fallen by around 40 percent when, BTC’s price is hitting its bottom.
This is one of many indicators that suggests lower.
Lows are yet to come and I would say it’s a particularly strong indicator given the circumstances.
Winter is approaching and this means that Extreme Measures will be taken to conserve energy telling crypto miners to pause their operations.
Wouldn’t be out of the question it already happened in some places over the summer namely Texas coincidentally the areas that are the most likely to resort to extreme energy measures over the winter seem to account for around 40 percent of Bitcoin’s hash rate.
Call me crazy but I think we will see that historic 40 hash rate crash in the coming months and this is roughly when the BTC bottom could come too.
