The price of Bitcoin fell even further, even for the first time in the last 5 months, touching the point below USD 30K. The reason, as already mentioned, is related to the Chinese government's attack on Bitcoin mining in the country.
Quoted from the BBC, the Bitcoin price hit USD 28,890 and has lost 50% of its value since reaching an all-time high of USD 64,870 in April.
In addition to attacking Bitcoin mining, which is considered environmentally unfriendly, China has also asked banks and payment platforms to stop transactions using the digital currency. The companies have been summoned by China's central bank to crack down on cryptocurrency trading.
Banks are not allowed to provide products and services related to cryptocurrency. At the same time, China also called for the closure of at least 26 Bitcoin mines in the Sichuan province, which has become a center for digital currency mining.
The Chinese government ordered the local government of Sichuan to start blocking Bitcoin crypto mining projects in its area and shut them down. They also prohibit the opening of new mining projects.
The four regions with the largest bitcoin mining in China besides Sichuan are now Xinjiang, Inner Mongolia, and Yunnan. Local governments in each of these areas have also taken the same step, which is to shut down bitcoin mining projects.
According to University of Cambridge research, China accounts for 65% of global Bitcoin production. China's crackdown on Bitcoin has many worried about Bitcoin's future.
"Anxieties are rising because of China's ongoing attacks and fears that widespread adoption of Bitcoin and other digital currencies will be delayed due to concerns about environmental impacts," said ThinkMarkets analyst Fawad Razaqzada.
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