The price of the leading cryptocurrency bitcoin sank Monday on reports that China has intensified its crackdown on cryptocurrency mining. Bitcoin fell 7% to a price of $32,801, dropping below $33,000 for the first time since June 8, according to data from CoinMarketCap. At the time of writing, the price of bitcoin is trading just below $33,000. Cryptocurrencies Ether and XRP also tumbled, down 8% and 7%, respectively.
China continues its crackdown on crypto mining.
As many as 26 bitcoin mining farms in Sichuan were shut down on Sunday after authorities in the southwestern Chinese province ordered a halt to crypto mining, according to a report from the Communist Party-backed newspaper Global Times. More than 90% of China’s bitcoin mining capacity is estimated to be shut down, the paper said. Sichuan follows similar developments in China’s Inner Mongolia and Yunnan regions and calls from Beijing to stamp out crypto mining amid worries over its massive energy consumption.
According to data from Blockchain.com, the shut down of crypto mining farms has led to a significant decline in bitcoin’s hash rate — or processing power — which has fallen sharply in the last month, according to data from Blockchain.com.
Bitcoin miners are moving towards clean energy.
China has been recently cracking down on bitcoin mining, which is a cause of concern for the crypto community as an estimated 65% of global bitcoin mining is done in China. China is taking measures to stop bitcoin mining in order to restraint the carbon emissions it produces. Bitcoin mining uses specialized machines that use massive energy to mine bitcoin. The good news is that more and more bitcoin miners are turning towards clean energy to mine bitcoin.