Bitcoin crashes to $52,000 By BTC Peers

Bitcoin crashes to $52,000

Over the weekend, lost over $7,000 in a matter of minutes, pulling most of the top cryptocurrencies with it.

Recall that the leading cryptocurrency reclaimed the $60k mark and set a new all-time high just a few days ago. But while many analysts were predicting new highs, things took a different turn on Sunday. Bitcoin took a massive price action knock after an outage in the Bitcoin hash rate. Within an hour, the price of the digital asset lost over $7,000, eventually plunging to a low of around $52,000. Consequently, about $10 billion was liquidated on the trading day.

Several theories have tried to give reason to the recent crash. While some blame the hash rate crash caused by a major power outage in China, others are pointing to rumors of upcoming crypto regulations from the United States.

Speaking of the hash rate crash, a popular Bitcoin statistician Willy Woo asserts that Bitcoin’s price is directly proportional to its hash rate. As such, the downward price trajectory is a temporary one. Bitcoin would recover as soon as the hash rate bounces back.

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 3 weeks then bitcoin will have a historically large difficulty adjustment but I think that’s unlikely – either grid comes back online or miners will move their hardware… Based on data that comes in we could end up learning that Xinjiang is a smaller share of the network than we thought (cbeci is great but data is a year old now). My theory has been that HR is migrating out of China, would be great to see confirmation.

Continue reading on BTC Peers

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button