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BTC Hashrate Slides 17% Overnight After The Chinese Mining Crackdown

BTC hashrate slides 17% overnight right after the Chinese mining crackdown in Sichuan where the power was cut off from 26 mining farms as we are reading more in our latest Bitcoin news today.

The top mining pools were affected and the BTC hashrate slides 17% still after the crackdown. The amount of mining power backing BTC dropped by 16.94% in the past 24 hours after the authorities from Sichuan urged to pull the plug on 26 mining farms. The falling hashrates can hurt Bitcoin’s price and back in April, outages in Xinjiang cut the hash rate by 30% and contributed to a $10,000 drop in the BTC price.

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The People’s Bank of China (PBoC) building in Beijing. (Source: Bloomberg)

This time, BTC dropped 5.71% to $34,205 which is a less pronounced dip than most of the top 20 coins by market cap. Some mining pools were hit even harder by the shutdowns in China than others but Data from shows that the mining pool dropped from the 11th to the 15th biggest mining pool after it lost 51.39% of the hashrate. The biggest pool lost 14% of the hashrate. The future of Chinese BTC mining looks quite bleak and this is a big deal for BTC because as some estimates about 65% of the computational power backing the BTC blockchain is coming from China.

Sichuan is very popular for most of the years as miners draw from the excess cheap hydroelectric power that was generated by vast dams. For the rest of the year, most miners migrated to Xinjiang where the cold weather cools down the miners that use coal-powered energy sources which save on electricity costs. But this can be no more. Xinjiang ordered a crypto mining farm to shut down in June which was only marking the start of the crackdown. China believes that BTC mining is a huge waste of energy and produces not really something useful so advocates maintained that one use of the payments network will help people get around the surveillance country that is China.

About 1% Of Bitcoin’s Supply, btc, wbtc, ethereum

As reported recently, The Chinese central bank demands from banks and payment institutions to stop providing a wide array of crypto services including transactions, opening accounts, and settlements. The Central Bank reportedly interviewed five banks including Alipay and requested that they don’t participate in crypt-related business as a part of the wider crackdown in the country and in the industry.

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