It was just the beginning of May 2021, when the Chinese regulators reminded the entire country about the crypto-ban imposed back in 2017. The regulators knew exactly how they were going to convey their message and wanted the cryptocurrency community in the country intimated and warned.
While many thought that it was just another notification by the Chinese regulators reminding the country of crypto-ban, the regulators had something else in mind.
Right after issuing the notification, the Chinese regulators joined forces with the authorities and started their crackdown against the crypto-industry. In the process, they shut down all major firms in the country that were dealing directly with cryptocurrencies.
Out of all the sectors, the sector that took the highest hit was the cryptocurrency mining sector. As the Chinese mining sector was responsible for generating more than 30% of the total world’s Bitcoin mining hashrate, things were bound to stir up.
As a result, the Bitcoin market ended up crashing and for a long time, the price of Bitcoin (BTC) almost fell lower than its 50% drop. In mid-April, the price of Bitcoin was sitting at $64.8k per BTC and as the shutdowns continued taking place in China, its price fell below $30k.
While the crackdown on the Bitcoin mining farms and centers continues to take place in China, the country is no longer generating the highest hashrate.
When the regulators started a crackdown on cryptocurrencies and Bitcoin in China, crypto-firms in the country had two options. The first option was to shut down and disband, and the other option was to relocate.
As a result, most of the cryptocurrency mining firms in China ended up relocating to different countries. Some cryptocurrency mining firms even dispersed their business and mining centers into different countries at a single time.
It has been more than two months since Chinese regulators started their crackdown on cryptocurrencies within their jurisdiction. However, the cryptocurrency and Bitcoin have started rebounding after taking the fall.
According to reports, the miners are now finding more profitability in the mining of cryptocurrencies, especially Bitcoin. Furthermore, even the hashrate for Bitcoin mining has started experiencing a rise as well as the block time has started experiencing a drop rate.
The records show that in the last 5-days, the profitability for Bitcoin mining has experienced a 31% increase, which reflects growth from July 2 to July 7.
This means that Bitcoin has started regaining its old hashrate and it is moving in the right direction. In mid-May, when the Chinese regulators started shutting down the mining farms, the Bitcoin profitability experienced a huge drop. In a matter of 17 days, Bitcoin’s profitability experienced a 46% drop. Even at that time, its price was hovering around $50,000, which is now around $33,000 per BTC.