Bitcoin miners face fresh Chinese crackdowns as Xinjiang shutdown cuts hashrate 8%

MicroBT has achieved a significant milestone by entering the Petahash Club with its latest Bitcoin mining rigs, showcasing advancements in mining technology from its base in Shenzhen, China. This development highlights the company's commitment to enhancing mining efficiency and performance in the competitive cryptocurrency market.

Ethereum is currently experiencing significant selling pressure, with its price dropping to $2,933 after a 9% decline in just eight hours. This downturn has led to the liquidation of over $670 million in long positions, reflecting a broader market struggle characterized by fear and uncertainty. Analysts are increasingly predicting a prolonged bear market extending into 2026, as Ethereum remains below critical structural levels.

The U.S. Federal Reserve has revised its guidance on how banks can engage with cryptocurrency, allowing for greater participation in digital asset trading. This change reverses previous restrictions that limited the activities of uninsured state-chartered banks, enabling them to access core payment systems and Federal Reserve membership.

Bitcoin's price has plunged to approximately $84,500 following a series of aggressive sell-offs, raising concerns about its stability and potential further declines. This significant drop comes amid a broader bearish sentiment in the cryptocurrency market, with analysts warning of a possible retest of the $70,000 support level.

Bitcoin's price has struggled to maintain stability, recently floundering below $90,000 despite a cooling inflation rate and rising stock markets. The cryptocurrency ended the week under $89,000, losing gains due to liquidity concerns and market volatility, particularly influenced by the Bank of Japan's interest rate decisions.

Bitcoin's price briefly reached $90,000 following the November Consumer Price Index report, which indicated a decrease in US inflation. However, the cryptocurrency's ability to sustain this rally remains uncertain as key market indicators are lacking.

Recent data indicates that the anticipated impact of the Bitcoin mining crackdown in China, particularly in Xinjiang, has been overstated, with hashrate losses being temporary and influenced by external factors such as power curtailments in the US.

Bitcoin's recent price movement saw a brief bounce above $90,000, but this was short-lived due to ongoing market volatility, leading to a significant decline in profits from on-chain transactions. The current trading environment reflects a shift from high reward opportunities to tighter margins for investors.