Bitcoin crashes at $ 52,000
Over the weekend, lost over $ 7,000 in minutes, dragging out most of the major cryptocurrencies.
Recall that the leading cryptocurrency recovered the $ 60,000 mark and set a new all-time high just a few days ago. But as many analysts predicted new highs, things took a different turn on Sunday. Bitcoin took a huge price action after the Bitcoin hash rate crashed. In less than an hour, the price of the digital asset dropped over $ 7,000, eventually falling to around $ 52,000. As a result, around $ 10 billion was liquidated on trading day.
Several theories have tried to justify the recent crash. While some blame the hash rate crash caused by a major power outage in China, others point to rumors about the future regulation of crypto from the United States.
Speaking of the hash rate collapse, popular Bitcoin statistician Willy Woo claims that the price of Bitcoin is directly proportional to its hash rate. As such, the downward price path is temporary. Bitcoin would recover as soon as the hash rate rebounded.
Price and hash rate have always been correlated: this is the BTC price versus the current hash rate collapse (due to the Xinjiang blackout). pic.twitter.com/mywEZLHlA0
– Willy Woo (@woonomic) April 18, 2021
Meanwhile, Nic Carter, co-founder of Coin Metrics shared similar sentiments, suggesting that the outage in China is responsible for the crash. He said:
If the outage lasts for 3 weeks then bitcoin will have a historically significant difficulty adjustment, but I think that’s unlikely – either the grid will come back online or the miners will move their hardware … based on the data coming in , we might end up learning that Xinjiang is a smaller part of the network than we thought (cbeci is great but the data is a year old now). My theory is that HR is migrating out of China, it would be great to see some confirmation.
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