Cryptocurrency miners for Bitcoin in China have ceased all or part of their operations after state officials in Beijing began a crackdown on mining operations late Friday evening.
The Chinese State Council, lead by Vice Premiere Liu He, announced the move late on Friday evening, affecting as much as 70% of the global mining market as estimated by crypto analysts. This crackdown includes large Bitcoin mining operators like HashCow and BTC.TOP.
Cryptocurrency exchange Huobi announced that they will be ceasing mining operations in mainland China and will instead be focusing on financing mining operations held overseas. They also suspended some trading options for users in China.
Officially, the regulatory actions are an effort to curb the high-energy demand of crypto mining operations that Novem Arcae chief investment officer Chen Jiahe says is “in direct conflict with China’s zero-carbon emissions goals.”
Cryptocurrencies responded negatively to the news, with both Bitcoin and Ethereum falling to record lows for the 2021 fiscal year. Both major digital assets have since rebounded at the opening of American and western markets.
Jiahe predicts that the crypto markets are in a massive bubble akin to the “tulipmania” of the 17th century, regarded by many as the first financial bubble in recorded history.