Bitcoin fell around 4% Thursday to be last at $$32,571 - its lowest in almost three weeks after China's Anhui province announced plans to shut cryptocurrency mining projects within three years.
Authorities in Anhui have announced measures to tackle cryptocurrency mining and growing electricity demand, local news agency Hefei Online said.
Anhui - the eighth biggest province in China in terms of population - faces a "grave supply shortage" of electricity, CoinTelegraph reported, citing Hefei.
On Wednesday, Chinese cryptocurrency journalist Colin Wu reported China's State Grid Corp. has issued a notice requesting the closure of cryptocurrency mining in all parts of the country.
"At present, some provinces with insufficient power in China, such as Henan and Anhui, have also begun to implement it," he said in quotes by CoinTelegraph.
Major Chinese mining locations, including Xinjiang, Sichuan, and Inner Mongolia have all announced similar measures to crack down on the cryptocurrency business.
Some cryptocurrency mining operators are now packing up and seeking tolerant authorities and cheap electricity outside of China because of the government's hardline stance.
China accounted for around 70% of the world's bitcoin production before the crackdown.
Anhui was once among China's poorest provinces, having only been removed from the country's official list of economically depressed areas last year.
In addition to shuttering mining facilities, Anhui authorities implemented other measures like scrutinizing new projects that demand huge power usage, establishing data centers and promoting the reform of electricity prices to optimize electricity consumption in the region, reports said.
