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Bitcoin Price Tanks Amidst China’s Crack Down On Mining Activities

As China accentuates its crack down on power-intensive Bitcoin mining activities, the price of Bitcoins are once again at their lowest point in June. The leading token dropped by over 10% on Monday. At press time, Bitcoins were exchanging ownership at $32,309.

Last week, 26 bitcoin mining centres were shut down in Chinese province of Sichuan. It is important to note that China has been the global hub of Bitcoin mining. It reportedly supports over 80% of the mining Bitcoin activities. If Chinese authorities further aggravate their efforts to clamp down on Bitcoin mining, it is likely that the prices of the leading token may see new lows. A notice from the provincial government in the region had asked electricity supply companies to turn off supply to Bitcoin mining centres. 

Earlier in May, China’s banking industry group, announced a ban on crypto payments which led to a sudden market crash. Though Bitcoin is trying to recover, favored by a decision from EL Salvador to legalize the digital asset, it is still half of what it was just over a month ago. 

It should be noted that Siuchan is China’s second biggest Bitcoin mining hub after Xinjiang. Cutting power supply to Bitcoin mining centres in the region will only lead to further drop in price of the top tokens. Local media reports have confirmed that the majority of the centres were blacked out by the authorities.

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