China's Moves Regarding Bitcoin in 2024
As of 2024, China continues to exert significant influence on the global cryptocurrency market, particularly in relation to Bitcoin. In recent months, the Chinese government has intensified its measures against the use and mining of cryptocurrencies, reiterating its ban on these activities. In January, new crackdowns on illegal miners were carried out, resulting in the seizure of equipment and the closure of several clandestine mining operationsâ (blockchainreporter)â.
Additionally, China announced additional measures to monitor and control cryptocurrency-related transactions, with the People's Bank of China (PBOC) releasing new guidelines for banks and financial institutions, prohibiting them from offering cryptocurrency-related services. This action aims to further restrict the use of cryptocurrencies as a means of payment and investment instrument in the countryâ (blockchainreporter)â.
The Chinese government's moves in 2024 have had a notable impact on the global Bitcoin market. The ban on mining activities in China, which previously accounted for a large portion of Bitcoin's global hash rate, has led to a redistribution of mining activity to other regions such as the United States and Kazakhstan. This redistribution helped diversify the global Bitcoin mining map, reducing dependence on China.
However, restrictions imposed by China have also brought volatility to the price of Bitcoin. On several occasions, announcements of additional crackdowns have resulted in significant declines in the price of cryptocurrency as investors react to regulatory uncertainty. Despite this, the market has shown resilience, with subsequent recoveries demonstrating investors' continued confidence in Bitcoin's longevity and value.
