The world’s most famous crypto fell by £ 1,600 from £ 25,961 at 6:30 a.m. to £ 24,353 at 1:30 p.m. It comes as Xi Jinping’s regime steps up its crackdown on crypto.
Part of this has been targeting “crypto mines” in the country that use computerized puzzle solving to create new units of virtual currency.
News of the measures sent Bitcoin tumbling from a high of nearly £ 47,000 as cautious investors avoided the currency.
Much of the energy-hungry mining process takes place in Sichuan – a province in southwest China.
On Friday, Chinese media reported that the 26 largest local mines were ordered to cease operations pending an investigation.
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The news will continue to put pressure on Bitcoin and the crypto industry at large as governments around the world begin to create more transparency and financial oversight.
Investors may also have been concerned after a video of employees at a large mine shutting down their computers’ servers went viral.
The decline comes just a week after Bitcoin received an unexpected boost from Tesla founder Elon Musk.
His value rose about five percent last Sunday after he tweeted that his company still had large holdings in the cryptocurrency.
In response to an article accusing him of “Bitcoin pump and dump”, he replied, “If there is confirmation of reasonable (~ 50 percent) clean energy consumption by miners with a positive future trend, Tesla will be Bitcoin again Allow transactions.
“That is inaccurate. Tesla only sold 10 percent of the stake to confirm that BTC could easily be liquidated without market movement. “
His tweets were posted just a month after he sent the price on cryptocurrencies by again seeming to insult the green credentials.
Bitcoin and cryptocurrency markets plummeted around £ 217 billion after he tweeted, “Cryptocurrency is a good idea on many levels and we believe it has a bright future, but this cannot result in huge environmental costs.”
Prior to the recent raid, pre-raid estimates suggest that China accounted for up to 75 percent of global mining.