Bitcoin price drops later China closes several mining pools

Over the weekend, the purchase price of Bitcoin dropped again after the Chinese government ordered the closing of a string of cryptocurrency mining pools in the nation.

The cost of the world’s biggest cryptocurrency dropped 5.5percent to 34,142 USD / dong June 20 (US time). However, then, the purchase price of Bitcoin increased again to $35,300 / dong. The cost of Ether — the 2nd hottest cryptocurrency — is steady in more than $2,200 each coin.

“The hash rate in China is dropping significantly as the government orders the closure of Bitcoin mining pools. In the long run, mining migration from China is a positive sign. However, in the short term, the market may be about to see new sell-offs,” Bloomberg quoted Jonathan Cheesman, a specialist in the FTX market as saying.

The decision to “break down and wipe out” that the cryptocurrency mining operation of this Sichuan provincial authorities (China) on June 18 caused more than 90 percent of Bitcoin mining capacity in this country to stall. Previously, Cambridge University estimated that China accounted for 65 percent of the total Bitcoin mining rate in the world as of April 2020.

In addition, Edward Moya – senior analyst at Oanda Corp – stated that the abrupt drop to almost 0 USD / coin of Titan token also place pressure on Bitcoin. The token belongs to a stablecoin job that once attracted investment cash from billionaire Mark Cuban.

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