Bitcoin miners in China‘s Xinjiang province are going offline following yet another government crackdown. Up to 400,000 mining machines have already been shut down, leading to a drop in hash rate.
Interestingly, Bull Theory analysts have linked Bitcoin’s current declines to sales driven by more complex motives:
One of the main reasons is China’s renewed crackdown on mining.
Indeed, the hashrate The network’s power has fallen by about 8%, which is quite significant considering that China still controls about 14% of the world’s computing power on the Bitcoin blockchain.
It is believed that this may be the reason Asian investors may have started selling, and this process is being accelerated by the capitulation of miners – closed mining farms are forced to sell their BTC reserves and equipment to cover their losses.
In addition, Asian exchanges such as Binance, bybit и OK, showing stable net spot selling during Q4, while US exchanges like Coinbase showed continued net buying.
This isn’t panic selling. It’s an exchange of offers. Until this pressure subsides, usually The price remains low, experts noted.
As reported by Luxor on Wednesday, hashrate Bitcoin’s price fell 10% from 1160 EH/s in October to 1045 EH/s in December, accompanied by three consecutive negative difficulty corrections.
Furthermore, according to Luxor, the price of hashrate, which determines a miner’s potential income, is at a record low of $0,036 per terahash per second per day. Falling profitability and rising costs are putting additional pressure on miners, forcing them to sell their resources.
Today Bitcoin attempted to touch the $90,000 mark, as it did yesterday, but a pullback occurred before touching $89,000. Dominance, according to CoinGecko, remains high at 57,5%.