Bitcoin Drops Under $30,000 For First Time In Five Months

Bitcoin fell underneath $30,000 on Tuesday for the first time in
five months, hit by concerns over China’s ongoing crackdown on the
world’s most popular cryptocurrency.

At about 1230 GMT, bitcoin sank nine percent to as low as
$29,624, attaining a level last seen in January, with analysts
citing Chinese efforts to crack down on trading and mining
operations.

“Concerns mount over China’s ongoing clampdown and fears that
widespread acceptance of bitcoin and other digital currencies will
be delayed because of concerns about their environmental impact,”
said analyst Fawad Razaqzada at trading site ThinkMarkets.

Bitcoin also faces a green backlash because mining often uses
electricity produced from fossil fuels, he noted.

China has broadened a crackdown on its massive cryptocurrency
mining industry with a ban on mines in the key southwestern
province.

Chinese mines power nearly 80 percent of the global trade in
cryptocurrencies despite a domestic trading ban since 2017, but in
recent months several provinces have ordered mines to close as
Beijing turns a sharp eye to the industry.

Authorities in the province of Sichuan ordered the closure of 26
mines last week, according to a notice widely circulated on Chinese
social media and confirmed by a former bitcoin miner.

Sichuan, a mountainous region in southwest China, is home to a
large number of cryptocurrency mines, which require a colossal
amount of energy supplied by the province’s cheap and abundant
hydropower.

Bitcoin fell underneath $30,000 on Tuesday for the first time in
five months, hit by concerns over China’s ongoing crackdown on the
world’s most popular cryptocurrency.

At about 1230 GMT, bitcoin sank nine percent to as low as
$29,624, attaining a level last seen in January, with analysts
citing Chinese efforts to crack down on trading and mining
operations.

“Concerns mount over China’s ongoing clampdown and fears that
widespread acceptance of bitcoin and other digital currencies will
be delayed because of concerns about their environmental impact,”
said analyst Fawad Razaqzada at trading site ThinkMarkets.

Bitcoin also faces a green backlash because mining often uses
electricity produced from fossil fuels, he noted.

China has broadened a crackdown on its massive cryptocurrency
mining industry with a ban on mines in the key southwestern
province.

Chinese mines power nearly 80 percent of the global trade in
cryptocurrencies despite a domestic trading ban since 2017, but in
recent months several provinces have ordered mines to close as
Beijing turns a sharp eye to the industry.

Authorities in the province of Sichuan ordered the closure of 26
mines last week, according to a notice widely circulated on Chinese
social media and confirmed by a former bitcoin miner.

Sichuan, a mountainous region in southwest China, is home to a
large number of cryptocurrency mines, which require a colossal
amount of energy supplied by the province’s cheap and abundant
hydropower.