Bitcoin blasts higher just as White House forces giant Chinese crypto miners to close

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Last Updated on 16 May 2024 by CryptoTips.eu

A softer than expected inflation reading delivered the best day in two months for Bitcoin. The largest digital currency rose to $65,000 in just a few hours.

At the time of writing, Bitcoin is trading for $66,000.

The United States are not very keen on Chinese Bitcoin mining companies operating on their territory, for the simple reason that they are directly connected to the energy grid of several important states. As tensions rise between the two superpowers, Bitcoin appears to be becoming an important pawn in a trade war.

Earlier this week, the White House ordered a Chinese Bitcoin mining company (which we wrote about last October) in Wyoming to close down within three months.

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Trade war

The trade war between China and the United States (started under Donald Trump and continued under Joe Biden) has already claimed several victims.

For example, American chip companies have not been allowed to export AI chips to China for a few months now and TikTok, an originally Chinese social media platform, was accused of ‘spying’ for the Chinese government by keeping all kinds of data about American youth.

TikTok will therefore soon be banned in the United States unless it agrees to a sale to an American company (both Meta and Microsoft are interested).

Air force

Earlier this week, the United States came with a new proposal. From now on, a 100% import tax will be levied on electric cars imported from China. The government in Beijing has not yet responded.

Meanwhile in Wyoming, a large Bitcoin mine, which is owned by a Chinese company, was ordered to close. The White House says the major crypto mine has three months to close down or sell to an American company. As a reason they stated the proximity to an American air base.

At the same time, Cleanspark, a major American crypto company, bought two data centers for Bitcoin mining in Wyoming just a few weeks ago. Once again, it seems to us, a Chinese company will be forced to sell to an American company.

Bitcoin and crypto thus become part of the trade war between the two superpowers

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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