Bitcoin crashes as China announces a crackdown on crypto mining.

The financial committee in China has revealed that it will crackdown on Bitcoin mining within the country, which was followed by a freefall in BTC price.

Bitcoin is hit by its second piece of bearish news out of China in under a week. This time, China’s financial committee has added crypto mining as a key sector to monitor in an attempt to “resolutely prevent and control financial risks.” The news was followed by a freefall in the price of bitcoin. The meeting was overseen by Liu He, the vice-premier of the State Council of the People’s Republic of China. 

 

State Council has explicitly mentioned Bitcoin mining for the first time. 

The report by Chinese authorities includes a laundry list of other activities beyond crypto  mining, including the reform of small- and medium-sized financial institutions, dull the effects of illegal securities activities, and “effectively respond to imported inflation.” Interestingly, this is the first time that the State Council has explicitly spoken out on Bitcoin mining. Despite the broad nature of the report, Bitcoin plummeted by 12%. The cryptocurrency’s price has since recovered to around $36,000, a loss of over 8% in the last 24 hours.

 

Bitcoin briefly dropped to $30,000 this week. 

Earlier this week, a similar piece of news dragged the leading cryptocurrency down to $30,000. At that time, a group of three payments and financial associations reiterated the central bank’s initial ban from 2017. The three associations were the National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China. They announced that financial firms are not allowed to engage with cryptocurrency-based firms. However, it is being reported that the latest crackdown on Bitcoin mining will be limited to operations that are not using hydroelectric power. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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