Bitcoin miners are simultaneously fleeing from China, moving to the US to operate

Three Bitcoin mining companies have announced plans to shut down operations in China following stern warnings from the country’s government.

With Bitcoin still in serious trouble following a 43% drop from its all-time high ($64000), the following set of bad news is likely to continue to send Bitcoin and the crypto market down. added instability.

According to CoinTelegraph, several major Bitcoin miners decided to shut down operations in China late last week. This decision to close comes after some reports that the Chinese authorities are planning to clamp down on cryptocurrency mining.

Specifically, Vice Premier Liu He and the State Council of China over the weekend announced that they will introduce a series of measures to manage cryptocurrency mining and trading activities, in the context that cryptocurrency mining is becoming more and more popular. a big business in China, accounting for 70% of the world’s cryptocurrency supply.

Accordingly, on the morning of May 24, three Bitcoin mining companies announced plans to suspend operations in China. Of these, BTC.TOP, which accounts for 2.5% of the total Bitcoin hashrate in the world (hashrate, the unit of speed of Bitcoin miners) said it would cease operations in mainland China. and moved to America.

A ‘mine’ of Bitcoin mining, with thousands of mining devices lined up close together

Huobi Mall – a subsidiary of cryptocurrency exchange Huobi – also announced that it does not sell crypto mining equipment in China, and confirmed to suspend its mining operations there. Meanwhile, mining company HashCow said it will stop buying new Bitcoin mining equipment for the time being.

Three of China’s major trade associations issued joint warnings against crypto investments last week. A hotline has been set up in Inner Mongolia to encourage residents to report any cryptocurrency mining activity they discover.

Bitcoin’s hash rate – a measure of how much computing power is used to ‘mine’ the cryptocurrency – has fallen by 30% globally, since China started warning recently. Accordingly, the total hash rate of all Bitcoin miners in the world has plummeted from 171 Eh/s to just over 118 Eh/s, as of May 22.

This can be seen as a sign that miners have given up on Bitcoin when news of China’s tightening of cryptocurrency regulation airs, or miners have switched to mining other coins in the context of Bitcoin. discount.

According to Cointelegraph, announcements about China’s strict regulation of cryptocurrency mining or trading are not new. Even so, these announcements still have a negative impact on the electronic market. Along with Elon Musk’s ‘depressing’ tweets, recent Chinese announcements are said to be the cause of the cryptocurrency market’s plunge. Total market capitalization at the moment is down to $1 trillion from where it was just 12 days ago.

Refer to Cointelegraph

Follow: Game News Page