Bitcoin drops as China intensifies crypto mining crackdown

>>> WELCOME BACK TO FAST MONEY CHECK OUT BITCOIN DROPPING ANOTHER 7% AS CHINA INTENSIFIES IT CRACKDOWN ON CRYPTO MINING. THE NEWS HITTING CRYPTO-RELATED STOCKS LIKE MICROSTRATEGY AND COINBASE FALLING DEEP INTO THE RED. EVERY TIME CRYPTO MAKES A BIG MOVE, I DON'T KNOW WHAT TO MAKE OF IT. >> THE CHARTS ARE CHALLENGING. THE CHARTS, I THINK WHETHER YOU ARE A PURE TECHNICAL CHARTIST, THERE IS A TEST TO COME. A LOT OF THE SHORT-TERM SENTIMENT IS AROUND CHINA'S RESTRICTIONS AND THERE IS A LOT OF SENTIMENT AROUND LAST WEEK AND WHERE THE FED IS IT WAS INTERESTING THAT BITCOIN KIND OF GREW UP AND BEHAVED LIKE THE CORRELATIONS INVERSE TO THE DOLLAR AND TO FED INTEREST RATE POLICY AND HAWKISHNESS, DOVISHNESS WAS VERY IMPRESSIVE FOR SOMETHING THAT WAS NOT ABOUT STORE, VALUE OR DIGITAL GOLD >> FOR MORE BRIAN KELLY JOINSOUS THE FAST LINE.

B.K. WHAT, DO YOU MAKE OF THE MOVE IN BITCOIN TODAY. THE CHARTS ARE CHALLENGING >> YEAH. NO I THINK TIM MADE REALLY GOOD POINTS THE CHARTS ARE CHALLENGING IF YOU THINK ABOUT WHAT HAS HAPPENED OVER THE LAST, LET'S CALL IT FOUR TO FIVE DAYS OR THE LAST WEEK OR SO, YOU DID HAVE BITCOIN TRADE WITH THE FEDERAL RESERVE, WHICH IS SOMETHING WE HAVE NOT SEEN IN THE HISTORY OF BITCOIN. AS WELL, YOU DO HAVE THIS NEGATIVE CHINA NEWS. IT SEEMS LIKE EVERY COUPLE OF YEARS CHINA BANS BITCOIN AND BITCOIN BOUNCES BACK IN THE LONG RUN I THINK WE ARE OKAY BUT I AGREE, IT LOOKS HEAVY, AND YOU KNOW, WE WILL SEE WHAT HAPPENS AT $30,000 WE REALLY NEED TO HOLD $30,000 >> A MOVE OF 9.5% IS PRETTY SEVERE FOR MOST THINGS FOR BITCOIN, NOT SO MUCH WHAT WILL KEEP THE VOLATILITY OF THIS CRYPTO CURRENCY IN CHECK OR IS THAT JUST THE NATURE OF CRYPTO CURRENCY. >> YEAH. THAT IS A GREAT QUESTION ONE, THIS IS NORMAL VOLATILITY FOR BITCOIN AND A NORMAL PART OF THE CYCLE THAT BITCOIN HAD IN 2017 WE HAD MULTIPLE 30 TO 50% PULLBACKS IN THE ASSETS.

THE VOLATILITY WILL DIE DOWN IF APPROXIMATE IT BECOMES A CURRENCY AS YOU HAVE MORE PLAYERS THAN JUST SPECULATORS IN THERE, COMPANIES USING IT GLOBALLY IN A SUPPLY CHAIN, THEY ARE GOING TO WANT TO HEDGE RISKS AND NOT BE NATURAL BUYERS THEY MAY BE SELLERS. VOLATILITY JUNKIES LIKE ME WILL PROBABLY BE BORED WITH IT BUT IT WILL BE A GOOD THING FOR BITCOIN BECAUSE IT WOULD MEAN IT MATURED INTO A FULL BLOWN CURRENCY >> WE ARE TALKING ABOUT THE CHARTS BEING CHALLENGED.

YOU MENTIONED 30,000 PEOPLE POINTED OUT DECEMBER 2017 HIGH, 20,000 WHERE DO YOU THINK THE LIKELY AREA OF SUPPORT IS AND THERE WERE HEADLINES ABOUT THE CHIP MAKERS AND THE IMPACT THERE RELATIVE TO SOME OF THE TECHNOLOGY FOR BITCOIN MINING. WHAT DO YOU THINK THE IMPACT IS LONG-TERM, IF ANY? >> YEAH. IN THE SHORT-TERM, YOU HAVE 30,000 ON BITCOIN, WE HAVE TO HOLD THAT. THERE IS A LOT OF LEVERAGE IN BITCOIN RIGHT NOW. IF WE BREAK THROUGH 30,000 YOU COULD SEE A SWIFT DOWNDRAFT LIKE WE SAW A FEW WEEKS AGO SO, WE WILL SEE WHAT HAPPENS WITH THAT. IN TERMS OF THE CHIP MAKERS AND MINING YOU ARE SEEING THE HASH RATE COMING DOWN, HOW MUCH MINING POWER IS DIRECTED AT THE BITCOIN NETWORK AT ANY TIME BECAUSE THE CHINESE MINERS SHUT OFF THE MACHINES BUT THEY ARE NOT GONE FOREVER. THEY ARE MIGRATING TO OTHER PARTS OF THE WORLD IN THE LONG RUN YOU ARE GOING TO SEE A MORE DIVERSIFIED AND DECENTRALIZED MINING STRUCTURE THAT WILL LIKELY BE A LOT MORE GREEN THAN IT WAS IN CHINA BUT UNTIL WE GET TO THAT POINT YOU ARE GOING TO HEAR ABOUT CHIP MAKERS NOT GETTING ORDERS AND ALL OF THAT.

THERE ARE MACHINES FOR SALE, AND YOU CAN PICK UP SOME MINING MACHINES, USED MINING MACHINES YOU MIGHT NOT NEED THE BRAND-NEW CHIP FOR THAT. BUT EVENTUALLY IT WILL COME BACK AND YOU ARE GOING TO WANT TO PUT THE LATEST AND GREATEST TECHNOLOGY TOWARDS THE BITCOIN MINING NETWORK >> THEY WERE TALKING ABOUT HOW THE EQUIPMENT IS BEING SHIPPED FROM.

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