The Chinese government’s attitude against Bitcoin mining is no secret to anybody. Back in May, Chinese officials reaffirmed an old ban that forbids financial firms from actively aiding in the mining and selling of cryptocurrencies. Although it created a sizable dip for the market, crypto investors still believe that China’s action will not have a substantial negative effect in the long run, as the ban was in place since 2013, but hardly anything had been done about it since.
Having said that, on Monday, the Chinese authorities took drastic actions against Bitcoin mining across the nation. This move sent a clear message that the Chinese government will enforce the crypto ban much more seriously. As the world’s largest crypto mining power that accounts for over 65% of the total computing power of Bitcoin mining, the ban surely created significant turbulence across the market. Bitcoin’s sell-off created a widespread domino effect on almost all cryptocurrencies. As most altcoins are built off the Ethereum blockchain, it’s no surprise that Ethereum has crumbled with it as well.
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