Chinese Authorities recently shut down several Bitcoin mines in the Sichuan province. According to Global Times, a Communist Party-backed newspaper, more than 90% of China’s Bitcoin mining is to be shut down. This, along with China’s policy against crypto trading, sent the market into another turbulent phase.
China’s crackdown had a significant effect on Bitcoin’s hash rate, which is an indicator of its processing power. According to Blockchain.com, around 65% of global Bitcoin mining is done in China. With its intense energy demand, the Bitcoin mining industry draws significant power from the nation’s electricity grid, causing overloads in provinces where Bitcoin mining is common. The world No.1 Bitcoin processing nation is on its way to a halt; Bitcoin unsurprisingly suffered a big setback. Whether people will “buy the dip” and boost Bitcoin back to its peak is still to be discussed.
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