- Bitcoin price dropped due to China expanding its crackdown on crypto mining.
- Other cryptos like Ether, XRP, Cardano and Dogecoin also traded low on Monday.
- More than 90% of China’s bitcoin mining capacity is currently shut down
The price of Bitcoin dropped on Monday. This BTC price fall is due to the recent reports that China has expanded its crackdown on the mining of cryptos. Following this, Bitcoin traded as much as 9% lower Monday morning before recovering slightly.
Meanwhile, the declines came after bitcoin mines in the Sichuan Province were closed Sunday. In addition, more than 90% of China’s Bitcoin mining capacity is currently shut down.
Mining is the energy-intensive process that produces new bitcoins while also processing transactions made with the existing supply.
Tesla CEO Elon Musk has criticized the bitcoin mining process for taking an outsize toll on the environment.
Meanwhile, China has long hosted the majority of bitcoin mining progress in the world. But the recent report that the Chinese government could be looking to limit mining activity in the country.
The World Bank seems to share some of China’s concerns. Last week, the international bank ignored El Salvador, which became the first country in the world to adopt bitcoin as legal tender.
Further, the World Bank rejected El Salvador’s call for help fulfilling the crypto, citing environmental and transparency shortcomings.
Tesla’s Musk has tried to find ways to limit the control of bitcoin mining on the environment. Last month, he met bitcoin miners in North America with Microstrategy CEO Michael Saylor to discuss energy usage.