There definitely would be a huge disruption in the market if Chinese Government tries to ban mining farms. Price might hugely fall. But because of that many other mining farms will open just in a month in various other countries because mining will be profitable at that time. Market will definitely recover but in that circumstances it would take more time. Many people might panic and withdraw their investments from Bitcoin and price might touch lowest point of the year. But in a period of some months, Bitcoin will come back on track.
The market doesn't give a flying fuck who or what is mining Bitcoin. Some of the richest traders probably don't understand the slightest thing about how it works. It's supposed to be invisible, not central to everyone's perception.
The only effect will be an increase in the time between blocks until the next difficulty adjustment unless enough miners elsewhere pick up the slack.
It would be one of the single most bullish things that could happen to Bitcoin. Chinese mining has been a cancer.
There might no doubt be an attempt by the usual whales to initiate a dip, but it's less than nothing compared to the closure of the markets.
