Chinese Crypto Miners Register Severe Crash of Bitcoin (BTC) Hashrate Amid Crackdown

Amid severe crackdown from the Chinese regulators, local Bitcoin (BTC) miners have started pulling the plugs and discontinuing their operations. Because of these restriction policies, the BTC hashrate at some of the biggest Chinese crypto miners has started to decline.

AntPool and Poolin have registered the biggest drop of around 25% in the BTC hashrate as per data shared by popular Chinese journalist Colin Wu.

Because China’s restrictions policy, Bitcoin hashrate starts to decline, ranked first antpool fell 25%. pic.twitter.com/9Dfqxr8OZe

— Wu Blockchain (@WuBlockchain) June 9, 2021

After shutting down operations at some of the biggest crypto mining destinations like Inner Mongolia and Sichuan, the Chinese authorities reached Xinjiang province earlier today. Thus, the drop in Bitcoin (BTC) hashrate is pretty much obvious.

The Bitcoin mining industry in China has unfortunately taken a turn for the bad subject to the regulatory crackdown. China’s Development and Reform Commission issued a statement saying:

State leaders have issued instructions to comprehensively clean up and combat virtual currency “mining” behaviors.  Projects shall be ordered to stop construction or production by the energy-saving review agency. Responsibilities of the person in charge, please immediately order your company to suspend production for rectification before 14:00 on June 9, 2021, and report the suspension of production and rectification to Changji Prefecture Development.

Chinese Search Engines Block Crypto Exchange Queries

The crypto ban in China is extending across multiple platforms and not just limited to mining. China’s tech search giants like Baidu and Sogou have blocked queries for three major exchanges including Binance, OKEx, and Huobi.

This has further extended to other popular platforms like Weibo (China’s Twitter) and Zhihu (China’s Quora). It looks like the Chinese regulators are blocking any kind of crypto-related business or communication to instill a full-fledged ban across the country.

Chian’s recent crackdown has put major pressure on Bitcoin and the overall crypto market. On Tuesday, the BTC price came crashing down all the way to $32,000. Reportedly, Chinese miners have also started offloading their BTC as the Bitcoin supply in Chinese miner wallets continues drying up.

About Author

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.