Cryptocurrencies Dive Amid China Crackdown on Bitcoin Miners

Cryptocurrencies extended losses on Monday as China’s crackdown on bitcoin mining expanded to the province of Sichuan.

Bitcoin, the largest cryptocurrency, fell to as low as $32,288 for the first time since June 8 and was last down 7.9% at around $32,781.

Smaller rival ether dropped below $2,000 for the first time since May 23, before trading 10 percent lower at 2,019

Cryptomining is a big business in China, accounting for more than half of global bitcoin production. But the State Council, China's cabinet, last month vowed to clamp down on bitcoin mining and trading as part of a series of measures to control financial risks.

On Friday, the Sichuan branch of the National Development and Reform Commission and the Sichuan Energy Bureau issued a decree to crack down on crypto mining operations. The region is particularly important as it is one of the largest hydro-based crypto mining hubs in China.

According to a report by the South China Morning Post on Monday, prices for GPUs have fallen by as much as two-thirds on e-commerce platforms following the crackdown. While the development is tentative for miners, gamers, who have long been locked out of buying the newest cards due to global supply shortages, are rejoicing.