Colin Wu, a Chinese cryptocurrency blogger, stated that Huobi Group’s subsidiary Huobi Pool will be withholding their services from China-based Bitcoin miners amid the China’s crackdown on bitcoin mining and trading..
China’s State Council published the minutes of a meeting hosted by Financial Stability Development Committee on May 21, which mentions the “cracking down on bitcoin mining and trading.”
What follows after is a notable sell-off of USDT against Chinese yuan , suggesting that the comments have caused many local traders and miners to become wary of the situation.
Over the past 24 hours since the news, Huobi’s bitcoin mining pool fell by 29%. The bitcoin’s hash rate has also experienced a noticeable drop since the past week as Sichuan-based power stations are facing energy limitation.
Within the hour after 22:00 local time, the exchange token of Huobi (HT), OKEx (OKB), and Binance (BNB) decreased by 17%, 19% and 10% respectively. These tokens cater to crypto traders in China. As for Bitcoin (BTC) and Ethereum (ETH), they fell by approximately 10% right after the news broke out. However, BTC and ETH ended up recovering back to roughly $37,000 and $2,300 respectively.