Was China’s latest mining ‘crackdown’ just a lot of FUD?

In a risk-off market, even a small shock can trigger massive FUD.

The crypto market has seen this pattern repeatedly. For instance, Donald Trump’s tariff announcement in October triggered a staggering $19 billion liquidation cascade, marking a key turning point for the rest of Q4.

A similar setup seems to be emerging now. Reports of a renewed Bitcoin [BTC] mining crackdown in China sparked fresh FUD. The narrative gained traction after BTC’s hashrate dropped around 8%, reinforcing market fears

However, many are brushing this off as simple “speculation.”

For context, the narrative picked up steam after Jack Jianping Kong, posted on X that BTC mining in Xinjiang was facing scrutiny. Two days later, he claimed that at least 400k miners had been shut down in China.

Consequently, the post was cited as proof of a large-scale shutdown. That said, with Bitcoin’s hashrate dropping 8%, it’s worth asking: Was this just a coincidence, or could it signal the start of another market-moving event?