As the crypto market continues to plunge, it lost more than 20 percent of value in the last two days amidst the $400 billion sell-off and the crackdown by the Chinese officials on crypto miners.
The recent sell-off is being described as the biggest in recent years, with the total market cap declining to $1.45 trillion – a three-month low. Since May’s impressive performance, the digital markets have recorded a 45 percent dump during the massive correction of the crypto market since May’s impressive performance.
Interestingly, the world’s most famous crypto-asset Bitcoin led the downward rally; it lost as much as six percent and was being traded at $35K. Even though BTC plunged to the $31K mark, it regained some of its value.
Beijing Ramps Up Crackdown
On the other hand, the downfall in the market comes as Beijing ramped up its crackdown on crypto mining firms. Reportedly, China’s most famous mining pools, including BTC.TOP and HashCow halted their services across the country.
The renewed push against digital assets’ miners came after the Vice Premier of China, Liu. He announced a clampdown. In a statement, BTC.TOP, one of the country’s top mining pools, said that they were halting their operations across the nations, citing the pressure from the government regulators.
Another top firm, HashCow, announced their decision to stop purchasing BTC rigs. Meanwhile, experts suggest that the main reason behind the crackdown could be the mining activities’ clash with the country’s carbon emission goals.
On Monday, Huobi Mall also revealed their decision to end their services across China and focus their attention on their international clients and investors.
As of now, China accounts for more than 60 percent of the world’s total hash power. Meanwhile, some independent observers have argued that this push against the high power consuming mining activities would be good for the digital assets in the long run.
Interestingly, the crypto supporters in the US seem to be making the best out of this opportunity. Over the last year, the American state of Texas has seen a significant surge in mining activities, primarily because of its low energy cost and crypto-friendly laws.
The local media outlets in China reported that the coins continuously losing their value had been the Chinese investors’ favorite. Some of such coins include Ripple, Dogecoin, Uniswap, ICP, and Polkadot.