{"id":43014,"date":"2021-05-24T11:04:31","date_gmt":"2021-05-24T08:04:31","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=43014"},"modified":"2025-08-31T01:45:59","modified_gmt":"2025-08-30T22:45:59","slug":"china-criticises-bitcoin-and-mining-market-falls","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/china-criticises-bitcoin-and-mining-market-falls\/","title":{"rendered":"China criticises Bitcoin and mining; market falls"},"content":{"rendered":"<p>The Xinhua News Agency of the PRC published a <a href=\"http:\/\/dz.jjckb.cn\/www\/pages\/webpage2009\/html\/2021-05\/24\/content_74130.htm\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> material<\/a> with criticism of Bitcoin and cryptocurrency mining. The publication complements the authorities&#8217; earlier stance,<a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-falls-below-37000-on-news-of-chinas-mining-ban\"> who urged to take measures against the mining and trading of digital assets<\/a>.<\/p>\n<p>The authors of the piece, under the heading \u201cUrgently stop the hype and chaos around virtual currency,\u201d pointed to the risks and negative effects of cryptocurrencies.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abIllegal and speculative transactions of Bitcoin or illicit issuance of tokens could inflict substantial losses on investors on one hand and affect the financial stability of the state and order in society on the other\u00bb, the article says.<\/p>\n<\/blockquote>\n<p>The agency asserts that Bitcoin \u201cis not and will not be a currency.\u201d Investors and financial institutions are advised not to participate in trading the asset.<\/p>\n<p>They<a href=\"https:\/\/u1f987.com\/en\/news\/media-china-bans-support-for-cryptocurrency-related-business\"> banned local companies<\/a> from supporting a digital-asset\u2013related business, and citizens were advised to refrain from investing in this class of financial instruments.<\/p>\n<p>The publication also mentions mining and projects that mislead the authorities \u201cin order to gain support.\u201d The agency also warned organisations dealing with participants in the cryptocurrency industry about their responsibilities.<\/p>\n<p>According to Reuters, the BTC.TOP mining pool and the HashCow bitcoin-mining company have already halted operations in China.<\/p>\n<p>Against this backdrop the market moved into the red zone. At one point Bitcoin traded below $31,100. In the last 24 hours the flagship cryptocurrency shed 3.1%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/EQDdzzlrWQGkvhVzJxUEN-AYmJsPeJCRRUCh68gkVkvntQLoxu0Ag5KHCQi9k_b4XxaxUw1nbL7WOCqdYUv2Puquku-z-fozxk_vQ-k4YJp5CNygxxkkfihI2bx8RYiWgLDyEAo-\" alt=\"China criticises Bitcoin and mining. The market fell\"\/><figcaption>Chart BTC\/USD on Bitstamp. Data: TradingView.<\/figcaption><\/figure>\n<p>Over the last 24 hours Ethereum fell by 3%, Cardano and Binance Coin by 4.3% and 5.3% respectively. Among the top five crypto assets by market cap, only the stablecoin USDT from Tether rose, according to CoinGecko.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/w--lUDNc8B_im8xhzYxg7ukhSLPMe-AIO7jLWbaU5Ap93lNiRfgrShMq7aqtwl268eMj2jhV6B_de9TZCIoWX5NwrYjSD88ZWaIv66IZw3kxDChQyz4vObZGp7_0ocZ8P8tw5NIU\" alt=\"China criticises Bitcoin and mining. The market fell\"\/><figcaption>Data: CoinGecko.<\/figcaption><\/figure>\n<p>Colin Wu noted that there is currently no definite information beyond the State Council&#8217;s statement. He said that due to this uncertainty any news or rumours \u201cmay cause market volatility.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">In fact, at present, there is no definite information about China other than the words of the State Council, \u00abcrack down Bitcoin mining and trading\u00bb. Because of this uncertainty that any small news or even rumors can cause market volatility.<\/p>\n<p>\u2014 Wu Blockchain (@WuBlockchain) <a href=\"https:\/\/twitter.com\/WuBlockchain\/status\/1396525608989982720?ref_src=twsrc%5Etfw\">May 23, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abIt is highly likely that in the coming week or even month this chaos will continue\u00bb, Wu said.<\/p>\n<\/blockquote>\n<p>According to analyst Nic Carter, Bitcoin has entered \u201cthe most critical period\u201d in its history. He added that the word \u201ccritical\u201d does not assign a positive or negative evaluation to what is happening, but merely underscores its importance.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We might be entering the most critical period in bitcoin history, exceeding even the latter half of 2017<\/p>\n<p>\u2014 nic carter (@nic__carter) <a href=\"https:\/\/twitter.com\/nic__carter\/status\/1396568729429987339?ref_src=twsrc%5Etfw\">May 23, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The analyst referred to his own tweet, in which he stated that all signs point to the hashrate migrating outside China.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">this is what i&#8217;m referring to ffs. <a href=\"https:\/\/t.co\/O82yLTBYif\">https:\/\/t.co\/O82yLTBYif<\/a><\/p>\n<p>\u2014 nic carter (@nic__carter) <a href=\"https:\/\/twitter.com\/nic__carter\/status\/1396573352865718272?ref_src=twsrc%5Etfw\">May 23, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Justin Sun, founder of TRON, suggested that the bull market is not over yet.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abWe are in a period of correction of the bull market. June will create a sustainable trend. July and August, without doubt, will herald the start of a new leg of the bull market\u00bb, \u2014<a href=\"https:\/\/twitter.com\/justinsuntron\/status\/1396646014845521920\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> wrote<\/a> Sun.<\/p>\n<\/blockquote>\n<p>The managing partner of Primitive Ventures, Dovi Wan, said that China\u2019s mining crackdown will make it greener. In the long run this should be positive for the price.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">China located mining out > less coal > greener > and green is good > up<\/p>\n<p>IYKYK<\/p>\n<p>\u2014 Dovey \u201cRug The Fiat\u201d Wan\ud83e\ude90\ud83e\udd96 (@DoveyWan) <a href=\"https:\/\/twitter.com\/DoveyWan\/status\/1396568051110137858?ref_src=twsrc%5Etfw\">May 23, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Analysts consulted by The Block highlighted several catalysts that could lead to a market capitulation:<\/p>\n<ul class=\"wp-block-list\">\n<li>\u00aba surge from losses of the largest holders\u00bb (MicroStrategy, Tesla);<\/li>\n<li>institutional investors exiting crypto due to high volatility;<\/li>\n<li>increased selling by miners to cover costs of migration.<\/li>\n<\/ul>\n<p>Earlier the Beijing municipal bureau of economy and information technology <a href=\"https:\/\/u1f987.com\/en\/news\/beijing-to-assess-impact-of-cryptocurrency-mining-on-electricity-consumption\"> requested<\/a> information from operators of local data-centres about their participation in mining cryptocurrency to assess the impact on electricity consumption.<\/p>\n<p>In May 2021, China CITIC Bank <a href=\"https:\/\/u1f987.com\/en\/news\/chinas-citic-bank-bans-accounts-from-buying-and-trading-bitcoin\"> prohibited<\/a> individuals and legal entities from using accounts to buy and sell cryptocurrencies.<\/p>\n<p>Subscribe to ForkLog news on VK <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener\">VK<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Xinhua News Agency of the PRC published a piece criticising Bitcoin and cryptocurrency mining. The publication complements the authorities&#8217; earlier stance, urging action against mining and trading of digital assets.<\/p>\n","protected":false},"author":1,"featured_media":43015,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1305,133,1137],"class_list":["post-43014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-ban","tag-china","tag-cryptocurrency-mining"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=43014"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43014\/revisions"}],"predecessor-version":[{"id":43016,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43014\/revisions\/43016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/43015"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=43014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=43014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=43014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}