The exchange rate of Bitcoin continued to decline for the last two weeks after the Chinese government expanded attacks on Bitcoin mines in various regions.
The bitcoin exchange rate dropped to USD 31,333, or a decrease of 10.7%. The biggest daily decline in the last month.
Over the last six days, the bitcoin exchange rate has dropped more than 20%. Now the exchange rate is only half of the highest exchange rate last April which reached USD 65 thousand.
One of the causes of this decline is the actions of the Chinese government which is increasingly tightening its regulations on bitcoin. One of them is by stopping bitcoin mining in Sichuan province.
There were about 26 suspected bitcoin mining sites shut down in this raid.
This move is part of the Chinese government's promise to tighten the mining and exchange of crypto assets to control the financial risks that may arise from these crypto assets.
China's central bank also said earlier that it had summoned a number of banks and payment companies, including China Construction Bank and Alipay, forcing them to do more to combat cryptocurrency exchanges.
Bitcoin mining in China in 2020 accounted for 65% of global bitcoin production. While the mine in Sichuan province is the second largest mining site in China.
The Chinese government ordered the local government of Sichuan to start cracking down on 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.
"People will react to China's move creating uncertainty, and this will likely have a negative impact on the price of bitcoin," said Ruud Feltkamp, CEO of Cryptohopper which provides crypto trading bots.
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