London: Bitcoin fell below $30,000 on Tuesday for the first time in five months due to concerns about China’s continued crackdown on the world’s most popular cryptocurrency.
Around 1230 GMT, Bitcoin fell 9% to US$29,624, reaching its lowest level in January. Analysts said China was working hard to crack down on trading and mining operations.
“Concerns mount over China s ongoing clampdown and fears that widespread acceptance of bitcoin and other digital currencies will be delayed because of concerns about their environmental impact,” said analyst Fawad Razaqzada at trading site ThinkMarkets.
Bitcoin also faces a green backlash because mining often uses electricity produced from fossil fuels, he noted.
China has broadened a crackdown on its massive cryptocurrency mining industry with a ban on mines in the key southwestern province.
Although domestic trading bans have been implemented since 2017, Chinese mines power nearly 80% of global cryptocurrency transactions, but in recent months, following Beijing’s attention to the industry, several provinces have ordered the closure of mines .
According to a notice widely circulated on Chinese social media and confirmed by a former Bitcoin miner, the Sichuan provincial authorities ordered the closure of 26 mines last week.
Sichuan is a mountainous area in southwestern China, with a large number of cryptocurrency mines, and requires the province’s cheap and abundant hydropower to provide a lot of energy.