The next restrictions have already affected the exchange rate of the main cryptocurrency. It has fallen to a minimum in a month
The Chinese province of Anhui will close all cryptocurrency mining projects. At the same time, almost 90% of cryptocurrency mining projects have already been closed in the country, which hits the cost of bitcoin.
Anhui in Eastern China will close all local cryptocurrency mining projects amid stricter requirements for electricity supply. To date, almost 90% of the Bitcoin mining capacity in China has been stopped, вЂњ the Chinese state-owned publication Global Times reported.
The new rules will also control other energy-intensive projects. And according to Chinese cryptocurrency blogger Colin Wu, the State Network Corporation of China recently ordered all provinces of the country to stop mining cryptocurrencies.
Bitcoin exchange rate
The bitcoin exchange rate has already reacted to the new bans in China. The value of the cryptocurrency has fallen to $31.9 thousand, although it has recently fluctuated in the range of $ 33-34 thousand. Bitcoin has not been so cheap since mid-June.
The market capitalization of the cryptocurrency has fallen below $600 billion.
The shaft of prohibitions
In early June, all mining farms in China's southwestern Yunnan Province were closed on the eve of the 100th anniversary of the Communist Party of China. Before that, Xinjiang, Sichuan, and Inner Mongolia вЂ” the three largest mining centers in China, which had a huge impact on the industry as a whole вЂ” also forced miners to turn off equipment.
In addition to restricting mining, China has also banned financial institutions and payment companies from providing services related to cryptocurrency transactions.
Such вЂњrepressionsвЂќ shook the cryptocurrency market, investors began to fear that other countries might take similar measures.
The exodus of Chinese miners also led to the fact that the global hash rate of bitcoin briefly fell to its lowest level since July 2019.