For crypto investors, and in particular investors interested in the China crypto market, bearish news hasn’t stopped flowing in.
Importantly, Bitcoin (CCC:BTC-USD) appears to be pushing steadily higher today thanks to news El Salvador will embrace BTC as legal tender. But anti-crypto activity in China is still key.
Why? China accounted for approximately 65% of new Bitcoin mining last year. Indeed, any country with a two-thirds market share on any commodity is worth watching.
In mid-May, China announced a ban on financial institutions from using cryptocurrencies. The country appears to be headed toward centralizing the cryptocurrency space, as much as possible.
With this backdrop, it’s easy to see why Bitcoin has approximately halved from its peak earlier this year. While crypto traders may be ignoring the momentum, there’s yet another bearish catalyst investors need to consider. Let’s take a look at the most recent news coming out of China today.
China Crypto News: A New Provincial Ban
Today, China’s Qinghai Province announced a new ban on crypto mining. This ban follows previous crackdown measures imposed in the province of Xinjiang.
As a key coal-based crypto mining hub, this move appears to be related to government concerns about energy usage tied to crypto mining activities. Whether it’s simply PR or genuine concern about the environmental impact of Bitcoin mining, this news adds to the recent chatter on this topic.
Tesla (NASDAQ:TSLA) CEO Elon Musk recently backtracked on his commitment to Bitcoin on this issue. With governments following suit, the ESG argument against crypto mining is growing stronger.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
