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Bitcoin value drops to 5-month low

China’s latest clampdown on the cryptocurrency trade has sponged off around $400 billion from the total digital currency market since Friday when a major bitcoin mining hub ordered miners to shut down processes.

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Bitcoin value drops to 5-month low
GNN Media: Representational Photo

On Tuesday, Bitcoin went down more than 8% in the last 24 hours, trading at $29,791 – It broke below $30,000 for the first time since January 27.

Other cryptocurrencies including ether and XRP were also sharply lower.

Over the past few days, China has stepped up its efforts to rein in the country’s cryptocurrency industry.

Sichuan—the biggest bitcoin mining centres in China shut down their operations, according to multiple media reports.

Many bitcoin mines in the southwestern Chinese province were closed as of Sunday, according to state-backed tabloid the Global Times.

The move in Sichuan comes after other mining-intensive provinces in China, including Inner Mongolia, also shut down crypto mining. In May, Beijing called for a crackdown on bitcoin mining, highlighting how the order has trickled down from the top.

On Monday, the Bank of China said it spoke to Alipay, the payments service run by Alibaba affiliate Ant Group, and some major financial institutions and it urged them not to provide services related to cryptocurrency activities, including account openings or clearing and settlement.

Since Friday, when the Sichuan authorities notified miners to shut down operations, bitcoin is down around 16%. The central bank notice added further pressure.

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