The price of bitcoin has dropped by 6% as a result of a Chinese ban on blockchain miners.
BITCOIN’S value has dropped 6% today as China’s crackdown on cryptocurrency continues.
From £25,961 at 6.30 a.m. to £24,353 at 1.30 p.m., the world’s most famous cryptocurrency declined roughly £1,600. It comes as Xi Jinping’s leadership tightens its grip on cryptocurrency.
Targeting “crypto mines” in the country, which use computational puzzle-solving to manufacture fresh units of the virtual currency, has been a part of this.
Bitcoin plummeted from a high of around £47,000 on news of the measures, as fearful investors fled the currency.
Sichuan, a province in southwest China, is home to much of the power-hungry mining industry.
According to Chinese media on Friday, the 26 main local mines have been ordered to shut down while an inquiry is conducted.
According to sources, it follows a series of meetings held by the local Development and Reform Commission’s Energy Bureau.
The investigation will remain until Friday, prompting many bitcoin miners to pack their belongings and relocate outside of China.
Governments in Xinjiang, Yunnan, and Qinghai have all announced steps to shut down cryptocurrency mining operations.
Many people are experiencing power outages, and the mines, which consume large quantities of energy, have been blamed for negatively impacting the rest of the community.
As governments throughout the world attempt to increase transparency and financial supervision, the news will put even more pressure on Bitcoin and the crypto industry as a whole.
Investors may have been concerned as well after a video of workers at a huge mine turning off their laptops’ servers went viral.
The drop comes barely a week after Tesla CEO Elon Musk gave Bitcoin an unexpected boost.
Its value increased by almost 5% last Sunday after he tweeted that his company still had big crypto holdings.
In response to an article accusing him of a “bitcoin pump and dump,” he said, “Tesla would restart enabling bitcoin transactions once there is confirmation of fair (50 percent) clean energy usage by miners with a good future trend.”
“This is not correct. Tesla simply sold 10% of its assets to ensure that BTC could be liquidated quickly and without causing a market move.”
His remarks came barely a month after he appeared to disparage cryptocurrency’s green credentials once more, sending the price of the cryptocurrency plunging.
After he tweeted: “Cryptocurrency is a good.”Brinkwire Summary News,” bitcoin and cryptocurrency markets fell by roughly £217 billion.