On average, investors are increasingly worried about the volatility of the Bitcoin (BTC) price, previously the market pointed the finger at China for being one of the main causes of the crypto market's severe slump.
Who would have thought the price of Bitcoin (BTC) would fall back to record levels in January with a decline of almost 31% since last April.
With Beijing's grip on the crypto sector tightening, it is also restricting crypto mining. As a result of the drastic measure, the mining difficulty network experienced the largest decline this year with a 16% drop to 21 trillion.
Data in the chain show that mining difficulty drops significantly from the highest reading of all time. On May 13, the average Bitcoin block production gap was only 8 minutes 14 seconds but now it takes 11 minutes 55 seconds, 4 minutes longer.
With more than 75% of Bitcoin miners based in China, mining companies in the country have ceased operations following a stern warning from the Chinese government. In Mongolia, too, the administration has imposed similar actions on the Bitcoin mining era.
In addition, several crypto mining companies and exchanges have begun discontinuing their operations in China, including Huobi, which ranks 8th largest crypto mining, accounting for about 4% of the world’s hashrate.
At the same time, some analysts are of the opinion that China will not block Bitcoin (BTC) absolutely, as claimed. It is likely that some parties want to manipulate sentiment.
Bitcoin is still trading sideways at $ 36,557.86 per bitcoin.
