Bitcoin crashes to $ 52,000
Over the weekend, lost over $ 7,000 in minutes, dragging most of the best cryptocurrencies with them.
Remember that a few days ago the leading cryptocurrency regained the $ 60,000 mark and hit a new all-time high. While many analysts were forecasting new highs, a different turn occurred on Sunday. Bitcoin suffered a massive price spike after a bitcoin hash rate failure. Within an hour, the price of the digital asset lost over $ 7,000 and eventually fell to a low of around $ 52,000. As a result, around $ 10 billion was liquidated on the trading day.
Several theories have tried to explain the recent crash. While some blame the hash rate crash caused by a major power outage in China, others point to rumors of upcoming crypto rules from the US.
Regarding the hash rate crash, a popular bitcoin statistician, Willy Woo, claims that the price of bitcoin is directly proportional to the hash rate. Therefore, the downward trend in price is only temporary. Bitcoin would bounce back as soon as the hash rate bounced back.
Price and hash rate were always correlated. This is the BTC price versus today's hash rate collapse (due to the Xinjiang blackout). pic.twitter.com/mywEZLHlA0
– Willy Woo (@woonomic) April 18, 2021
Meanwhile, Coin Metrics co-founder Nic Carter shared similar views, suggesting the failure in China was responsible for the crash. He said:
If the outage lasts 3 weeks then Bitcoin has a historically high level of difficulty, but I think that's unlikely – either the grid will come back online or miners will move their hardware … Based on the incoming data, we could end up finding that Xinjiang a smaller portion is of the network than we thought (cbeci is great, but the data is now a year old). My theory was that HR is moving out of China would be great to see confirmation.
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