The ongoing crackdown on bitcoin mining facilities in China has fueled the already existing FUD in the crypto space, prompting several holders, including Mad Money host, Jim Cramer, to liquidate most of their bitcoin holdings.
In a recent report by CNBC, Cramer revealed that he had liquidated his bitcoins due to concerns over China’s new stance against cryptocurrencies.
According to Cramer, it is pointless trying to go against China, as it is home to a large portion of the bitcoin mining facilities in the world.
“Sold almost all of my bitcoin. Don’t need it… When the PRC goes after something, they tend to have their way. … It’s not a democracy. It’s a dictatorship. I think that they believe it’s a direct threat to the regime because what it is is a system that’s outside their control.”
Barely two months ago, Cramer had basked in the euphoria of making massive profits from the sale of a portion of his bitcoin holdings. He disclosed that he was able to pay off his mortgage from the profits.
However, with the crypto market going on a downward spiral mainly because of China’s policies, Cramer has decided to get out as soon as possible.
Massive Crypto Mining Crackdown in China
For several years, China has been the center for over half of the world’s entire crypto mining facilities. Most areas in the country are considered to be the top crypto mining hub because of the abundance of hydropower.
In recent months, however, the Chinese government has decided to mandate these crypto mining companies to cease operating in the country.
On Friday, the authorities in the Chinese province of Sichuan issued an official statement demanding that every major bitcoin mining facility in the area must be shut down with immediate effect.
Subsequently, the crypto market crashed as several investors jumped off the bitcoin bandwagon. Bitcoin’s price fell by over 5%, trading below $37,000.
While the crypto market is still absorbing the shock, the government of China has allegedly arranged a meeting with its top five banks to map out different strategies to stomp out this emerging industry.