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Bitcoin (Bitcoin) Although the coin showed a strong 17% rebound overnight, Monday’s downward trend continued. As the coin continues to heal the wounds from the 43% price drop from its recent all-time high, Bitcoin and the broader cryptocurrency market may still face more turbulence.
Several large Bitcoin miners Opt out of operations There was news last weekend that the Chinese authorities planned to crack down on cryptocurrency mining in China.
By Monday morning, three Bitcoin mining pools announced plans to stop activities in China. BTC.TOP, Which accounted for In the past week, Bitcoin’s total hash rate was as high as 2.5%, and said it would close stores in mainland China and transfer its business to North America.
Huobi Mall, a subsidiary of the Huobi Cryptocurrency Exchange, also announced on Sunday that it will no longer sell crypto mining equipment in China and will suspend its mining operations in China. At the same time, mining company HashCow said it will temporarily stop purchasing new bitcoin mining equipment.
On May 21, the Hong Kong authorities announced an impending ban on cryptocurrency retail transactions, which will restrict transactions to qualified investors who only have the following conditions: Over a million dollars In their portfolio.
Three major industry associations in China Published A warning against cryptocurrency investment was coordinated last week.The telephone hotline is Set up In Inner Mongolia, citizens are encouraged to report any cryptocurrency mining activities they have witnessed.
Bitcoin’s hash rate (a measure of the computing power of miners on the blockchain) dropped by 30%, leading to a series of warnings issued by China recently.This Hash rate drops From 171 Eh/s to May 22, it just exceeded 118 Eh/s. This can be explained as a sign that miners gave up Bitcoin when the Chinese news landed, or they switched to other, more profitable coin price declines driven by BTC.
China’s new round of crackdowns on the cryptocurrency sector is nothing new, but the superpower’s statement continues to cause serious damage to the cryptocurrency sector.With Elon Musk Earth-shattering tweets, China’s recent announcement has been accused of sinking the cryptocurrency market-this number is still $1 trillion short of this time 12 days ago.
However, given that the perceived value of many coins and tokens has only jumped from 500% to 2,000,000% within a few months, and since gravity is still at work, there are many other explanations for the market crash.
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