Bitcoin dropped below 30k USD after Chinese authorities issued an order to all banks and payment providers to cease their support for digital currency transactions. Bitcoin has not fallen this low since January this year.
This happened after Chinese authorities banned Bitcoin mining in the Sichuan provice last Friday.
The Central Bank of China issued a statement banning all banks from providing trading, clearing and settlement services for crypto currency transactions and from issuing any financial instruments based on crypto coins.
At the same time, 26 crypto mines in the Sichuan province were forced to close.
65% of the whole global Bitcoin mining happens in China, and the Sichuan provice is the second largest mining hub.
Other cryptos weren’t spared either, Ethereum dropped too.
Source
I have little doubt the industry will recover and go somewhere else, but it will take time.
This happened after Chinese authorities banned Bitcoin mining in the Sichuan provice last Friday.
The Central Bank of China issued a statement banning all banks from providing trading, clearing and settlement services for crypto currency transactions and from issuing any financial instruments based on crypto coins.
At the same time, 26 crypto mines in the Sichuan province were forced to close.
65% of the whole global Bitcoin mining happens in China, and the Sichuan provice is the second largest mining hub.
Other cryptos weren’t spared either, Ethereum dropped too.
Source
I have little doubt the industry will recover and go somewhere else, but it will take time.
