Although Bitcoin (BTC) has gained 17 percent since last night, it continues its downward trend overall. The turmoil may not be over for the Bitcoin and cryptocurrency market, which is at 43 percent lower than its all-time high.
Some major Bitcoin miners in China have decided to cease their operations after news spread last weekend that Chinese officials would block cryptocurrency mining.
As of Monday, three Bitcoin mining pools announced that they are ceasing operations in China. BTC.TOP, which accounted for 2.5 percent of the overall Bitcoin hash rate over the past week, announced that it will move to North America, ceasing operations in mainland China.
Huobi Mall, a subsidiary of cryptocurrency exchange Huobi, announced on Sunday that it will no longer sell crypto mining hardware in China and will suspend mining operations in the region. The mining company HashCow has also stated that it will not buy new mining hardware for a while.
Hong Kong officials announced on May 21 that the ban on individual cryptocurrency trading will be enforced soon. After the ban, only accredited investors with more than $ 1 million in their portfolios will be able to trade cryptocurrencies.
China’s three major trade associations also issued coordinated warnings on cryptocurrency investments last week. Telephone lines have been established to report crypto mining activities in the Inner Mongolia region.
Bitcoin’s hash rate (the processing power miners spend on the blockchain) dropped 30 percent after the news, from 171 EH / s to 118 EH / s. This suggests that miners may have quit mining because of the news, or they may have turned to more profitable cryptos due to the price drop of BTC.
Although China’s anti-mining rhetoric is merely a repeat of old decisions, it has caused serious turmoil in the cryptocurrency industry. With this situation fueled by the negative comments of Elon Musk, the market lost 1 trillion dollars in just 12 days.