The policy adjustments of some countries regarding cryptocurrency mining activities, shifting from encouragement to restriction, have a specific transmission mechanism on cryptocurrency production costs and market prices. When mining is restricted, the supply of newly mined cryptocurrencies decreases due to reduced mining operations. This reduction in supply, combined with potentially increased mining costs due to stricter regulations (such as higher energy - consumption requirements), can drive up the market prices of cryptocurrencies. Conversely, when policies encourage mining, the increased supply can put downward pressure on prices, assuming demand remains stable.