The noose is tightening more and more on Bitcoin in China. Recently, we even learned that access to certain crypto exchanges such as Binance, OKEx or HuobiGlobal were suspended. At the same time, a new province in China has just suspended Bitcoin mining activity.
Bitcoin mining activity threatened in China?
Two weeks ago, the Inner Mongolia Autonomous Region unveiled new rules to hamper Bitcoin mining activity. More recently, on June 9, 2021, an official report was published calling for an immediate end to BTC mining in the Xinjiang region. The same day is the Qinghai province who suspended mining. The injunction is from the Qinghai Industry and Information Technology Department. The report thus indicates the suspension of all Bitcoin mining activities in the region and refers to an "inspection" of the facilities.
For the moment, it is therefore difficult to see clearly and to know if these "suspensions" of activities will be synonymous with "prohibition" in the long term. However, this is a new weak signal sent from China concerning Bitcoin.
“There are three major mining regions in China. Inner Mongolia has come to a complete stop (….) The situation in Xinjiang is more complicated. The term used in the document is to suspend on the grounds of "rectification," which is not as strict as Inner Mongolia. »Colin Wu Blockchain, reporter
The impact on Bitcoin
China has long been the epicenter of Bitcoin mining activity. Although it is difficult to know the mining power covered by these regions, there is no doubt that it is significant. Without surprise, Bitcoin's total hashrate has been impacted. As a result, the hashrate has dropped from 180 EH / s on June 9 to 110 EH / s at the time of writing. To see such a low hashrate, you have to go back to November 2020.
On the other hand, the price of Bitcoin does not seem to have been affected by these decisions. At the time of writing, the price of Bitcoin is even registering a + 5% increase over the last 24 hours. The BTC price is hovering around the € 30,000 mark.