China’s Anhui province has announced that Bitcoin mining in the area will be shutdown, as the country’s crackdowns on crypto miners continue.
China’s Anhui Province Plans To Crackdown On Crypto Miners
As per a Bloomberg report, China’s series of crackdowns on Bitcoin mining continue as another province, Anhui, joins in.
Located in Eastern China, Anhui is a province just three hours away from Shanghai by high-speed train.
The local government plans to root out all Bitcoin miners and related projects in the province within the next 3 years.
Hf365.com, a local news portal, first broke the news about the government’s movement. The media group behind the website has affliations with the government of Anhui’s capital, Hefei.
The province has been facing acute power shortage for a while now, as per the news portal. Anhui’s current power supply is around 48.4 million kilowatts, while the government projects the demand to rise to around $73 million kilowatts by the year 2024.
Since Bitcoin mining farms are very power hungry, the move makes sense to save some energy.
Related Reading | Western Bitcoin Miners Win Big During China Crackdown
According to reports, going forward, the province also plans to curb energy requirements of any new projects that require high power consumption. Data centers will also be built in an orderly manner.
There have also been talks about electricity pricing reforms in the province to ensure judicious use of energy.
Crackdowns On Mining And Bitcoin Price
Anhui’s mining shutdown is part of a series of crypto-related crackdowns that China has been doing for a while now.
Whenever China announces more crackdowns, Bitcoin’s price generally seems to take a hit. The 2021 bull run ended when China reiterated its cryptocurrency ban, and BTC’s price fell almost 50% in response.
Related reading | China’s Oldest Crypto Exchange Shuts Down Bitcoin Business As Crackdowns Continue
Other parts of the country like Inner Mongolia and the Yunan Province announced their intention to crackdown on Bitcoin mining earlier this year.
Just last month, the Sichuan province also announced crackdowns in the city of Ya’an. The area is known for its hydropower abundance, and the cheap energy has made it a miner hub.
At the time of writing, Bitcoin’s price floats around $32.8k, down almost 5% in the last 7 days. While the coin has fallen 19% in the past 30 days.
Here is a chart showing the trend in the crypto’s value over the past 6 months:
Bitcoin's price is on an overall downtrend | Source: BTCUSD on TradingView
BTC’s price continues to be stuck in a range bound market as price fails to break out of the $30k-$35k level. Right now, it’s hard to say when the crypto will be able to escape this zone of low volatility.
Featured image from Pexel.com, chars from TradingView.com