Bitmain halts shipping of Bitcoin mining machines to Chinese customers

Bitmain, one of the world’s largest cryptocurrency mining machine manufacturers, has decided to stop shipping its Antminers to mainland China, starting on October 11. This came shortly after China announced a sweeping ban on digital assets and recently even claimed that crypto transactions are illegal.

Bitmain witnesses end of domestic market share

The Beijing-based Bitcoin hardware manufacturer recently announced that it would no longer send machines to mainland Chinese customers. The firm stated that it would follow local regulations and halt deliveries starting on October 11. 

Despite its suspension of the delivery of its mining machines in mainland China, its overseas business will remain unaffected. For customers who have purchased long-term products at Bitmain, the firm stated that its staff would contact them to provide alternative solutions.

Sales of mining equipment in China have been declining since late last year as China increasingly clamped down on the new asset class. Nearly 50% of Bitmain’s revenues in 2017 came from domestic sales, which decreased to almost 40% in the first half of 2018. While China’s market share was declining, North American mining operations have seen a rise.

Although the Chinese market is experiencing a shutdown, Bitmain increased its production capacity for mobile mining containers, also known as the Antbox. The firm is expected to host the World Digital Mining Summit 2021 in Dubai in the coming month to discuss green energy mining opportunities.

The Bitcoin hash rate difficulty has recovered 39% since the drop in July this year. This indicates that miners outside of China were able to participate in the mining sector, leading to the recovery.

Bitcoin price shows strength in aiming higher

Bitcoin price has claimed a higher high on October 11, recording a new top at $56,756. The leading cryptocurrency is hinting at bigger aspirations, as an ascending parallel channel pattern emerges on the 12-hour chart.

The world's largest cryptocurrency by market capitalization could see a bounce of 8% toward $60,903 if it manages to escape the resistance of the upper boundary of the governing technical pattern.

BTC/USD 12-hour chart

However, any weaknesses seen in the market could see Bitcoin price test the sturdiness of the foothold at the downside trend line of the prevailing chart pattern at $54,232 before BTC tests its support at the 20 twelve-hour Simple Moving Average (SMA) at $51,966, where the 78.6% Fibonacci retracement level sits.