In the past few hours, Bitcoin and the general cryptocurrency market faced a huge sales wave. Bitcoin (BTC) has lost 14.9% of its largest altcoin, Ethereum, while falling by 8.8% in the last 24 hours. While the entire cryptocurrency market has been losing, its overall market cap has lost $ 180 billion in the last 24 hours alone. Other major altcoins have also lost more than 10% in the last 24 hours. According to experts, the reason behind this situation is the pressure suggested by China on Bitcoin mining and trading, and especially the significant sale of USDT.
China’s Bitcoin pressure triggers USDT sale in OTC markets
At the meeting hosted by the Financial Stability Improvement Committee, the Chinese State Council commented on the measures to be taken for Bitcoin mining and trading activities as part of the effort to prevent financial risks. Then, within hours after the news hitting the crypto and mainstream media in China, the ratio of Tether (USDT) to the RMB rate on OTC tables started to decline in China. According to experts, this means that Chinese traders, including miners, are selling USDT for Chinese yuan through their OTC desks.
Dovey Wan, co-founder of Primitive Ventures, said after this news that several big miners who made money on Twitter in the last 6 hours have been selling non-stop and using all the channels to do so. Currently, the price of USDT is 6.33 yuan in the OTC market in Huobi, OKEx and Binance, but dropped from 6.5 yuan before the news to 6.2 yuan around midnight on Saturday.
BTC hashrate also dropped
Meanwhile, blockchain data shows that real-time hashrate linked to large Bitcoin (BTC) mining pools has seen small to moderate declines within 24 hours since the news broke out. However, Huobi’s Bitcoin mining pool has dropped 29% in the past 24 hours. Overall, while power plants in China’s Sichuan are experiencing energy constraints, the Bitcoin hash rate has dropped significantly since last week.
At the meeting held on Thursday, the implementation of regulations regarding the financing activities of companies, reducing the credit risk, as well as reducing Bitcoin mining and trading activities were also discussed. Bitcoin mining commentary comes at a time when China is stepping up its efforts to fulfill the carbon-neutral mission that Xi committed in his last speech.
In addition, Jiang Zhuo, founder and CEO of popular Bitcoin miner BTC.top, said in a statement on Saturday at Weibo that his business will stop serving customers in China. “B.TOP has not received any legal requirements from the relevant government agencies. But given the latest regulatory signal and B.TOP’s work from inside China is a small part of our proprietary mining business, there is no need to continue providing miner brokerage services to consumers in China and taking extra legal risks. used the expression.