Bitcoin, Dogecoin and Ethereum are in sharp decline
With the closure of 26 mining operations in the Sichuan region, China’s overall Bitcoin mining will be reduced by 90% and global mining by a third. The backlash on the market has already arrived.
China has decided to tighten cryptocurrencies to curb speculative trading, shutting down several mining operations in Sichuan province in southwest China, known to be the cradle of many miners. It is estimated that the closures will lead to a 90% reduction in Bitcoin mining in the Chinese area. Following this decision, the global cryptocurrency market showed signs of weakening which confirmed the downward trend.
China stops mining cryptocurrencies
Since June 20, many mining operations have been closed after local authorities ordered the mining of cryptocurrencies to be stopped. The decision follows that of the Chinese State Council which at the national level had expressed itself in May for the reduction of mining activities with these words: “Bitcoin mining and its commercial practices must be repressed and the transmission of individual risks to the sector must be prevented. social.” China has therefore expressed concern about the speculative trading of cryptocurrencies that could contaminate and be a risk for the real economy.
The notice issued by the Sichuan authorities on Friday leaves no room for doubt about the toughness to be applied to cryptocurrencies, as it has ordered local electricity companies to “check, finish and reclaim” the 26 reported mining activities by Sunday.
Chinese miners had already been hit in the northern areas of the nation and with the closure of those of Sichuan, in the southwest, it is expected that bitcoin mining will be closed for a total of 90%.