June 12, 2024

The decline of bitcoin in the wake of China’s repression

2 min read

TOKYO, June 21 (Reuters) – Bitcoin fell as much as 9% on Monday as the cryptocurrency market showed no signs of slowing down, with market players citing sluggish liquidity and repression over bitcoin mining.

Bitcoin fell to $ 32,288, its lowest level in 12 days, and the last 7.5%. If prolonged, this fall in a month will be its biggest.

Authorities in the southwestern province of Sichuan on Friday ordered the closure of cryptocurrency mining projects. China’s cabinet, the State Council, last month promised to curb bitcoin mining and trading as part of a series of measures to curb financial risks. read more

“Repression on Chinese miners could mean that they are loading the currency into a thin market and degrading us,” said Ben Sepley of the PCB Group, a London-based crypto company.

Bitcoin production in China accounts for more than half of global Bitcoin production. According to data compiled by the University of Cambridge, Sichuan is China’s second largest bitcoin mining province. Some miners change production during the rainy season and use its rich hydropower resources.

My bitcoin companies generally hold large inventories of cryptocurrency and have no move to exclude large-scale sales.

Bitcoin has fallen more than a fifth in the last six days, and has fallen by half from its April peak of $ 65,000. Still, it is up more than 10% this year.

Small competitive ether, the second largest cryptocurrency of market capitalization moving in conjunction with Bitcoin, fell as much as 12% to nearly $ 2,000 for the first time in almost a month. It was last down 10% to 25 2025.31.

Report by Kevin Buckland; Editing by Toby Chopra

Our standards: Thomson Reuters Foundation Principles.

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