In the context that Bitcoin is still `seriously injured` after a drop of up to 43% from its all-time peak (64,000 USD), the following series of bad news may continue to cause Bitcoin and the cryptocurrency market to fall.
According to CoinTelegraph, several major Bitcoin mining companies decided to stop operations in China late last week.
Specifically, Deputy Prime Minister Liu He and China’s State Council announced over the weekend that they would introduce a series of measures to manage cryptocurrency mining and trading activities, in the context that cryptocurrency mining is
Accordingly, on the morning of May 24, three Bitcoin mining companies announced plans to suspend operations in China.
Huobi Mall – a subsidiary of the Huobi cryptocurrency exchange – also announced that it does not sell cryptocurrency mining equipment in China, and affirmed that it will temporarily suspend its mining activities there.
Three of China’s major trade associations issued joint warnings against cryptocurrency investing last week.
Bitcoin’s hash rate – a measure of the amount of computing power used to ‘mine’ the cryptocurrency – has dropped 30% globally since China’s recent warnings began.
This can be seen as a sign that miners have abandoned Bitcoin when news of China’s tightening of cryptocurrency management surfaced, or that miners have moved on to mining other coins in the Bitcoin context.
According to Cointelegraph, announcements about China’s strict management of cryptocurrency mining or trading are not new.
Refer to Cointelegraph
