As per the latest reports, China’s recent crackdown on cryptocurrencies has caused a huge impact on the entire cryptocurrency market. As a result, the cryptocurrency industry has witnessed a loss of $300 billion from the market.
The reports suggest that the cryptocurrency industry has experienced a $300 billion wipe-off between Friday, June 18 and Monday, June 21, 2021. According to reports, the major reason behind such a downfall was the shutting down of operations at one of the mining hubs.
The order was issued by the Government of China to one of the provinces where the Bitcoin (BTC) is being mined on a large scale. This caused Bitcoin (BTC) to take even a lower drop and the market ended up losing $300 billion.
According to data from one of the on-chain data analyzing firms, the price of Bitcoin (BTC) at 10:47 pm (ET) on Sunday, June 20, 2021, was $32,735.71. However, in a matter of 24-hours, the price of Bitcoin (BTC) experienced a 6.6% price drop, coming all the way down to $31,179.05.
Since last month, the Chinese Government, as well as regulatory authorities, have become very active against cryptocurrencies. Although cryptocurrencies were banned in China in 2017, yet the authorities were not seen becoming very active against the implementation of the ruling until now.
Now it seems that the Chinese authorities are determined to take down any firms or entities that are still dealing with cryptocurrencies.
As China is the top country when it comes to mining cryptocurrencies, it is ought to take a huge hit when cryptocurrency activities are fully banned in the country.
This is the reason why the recent banning of cryptocurrency mining activities within the Sichuan Province has caused such an impact on the overall crypto-verse. It was on Friday when the authorities in the Sichuan Province issued an order for the cryptocurrency mining firms to stop crypto-mining activities at once.
Following the issuance of the order, it was reported that several Bitcoin and altcoin mining centers had ceased mining activities.
Sichuan is not the only province in China that has issued orders for the ceasing of cryptocurrency mining operations. Sichuan follows on the footstep of Inner Mongolia that had already stopped its mining activities back in May.
The initial orders for the crackdown on cryptocurrency mining centers were issued from Beijing, the capital of China.
Then on Monday, June 21, 2021, another news was dropped on the cryptocurrency community in China. The People’s Bank of China had reportedly issued a request for major financial institutions and online payment services firms Alipay. The request urged these firms not to provide cryptocurrency-related services to consumers or any companies in the country.