Bitcoin market nosedived on April 18th after news of hash rate crash and rumour of US treasury’s impending action against financial institutions involved in money laundering using cryptocurrency.
Today is a hard day in the crypto market. Bitcoin has shed some significant price with altcoin following the suit. The bull rally seems to be colling off.
Also Read: What Causes Bitcoin’s Price Movements?
Bitcoin had a good week with price maintaining support at $60K. The anticipated Coinbase listing increased the interest of traders. Resultantly, crypto markets kept flying high. However, on Sunday most of the crypto coin went downwards in price. Bitcoin, most importantly, lost value within minutes following two news: hash rate crash and US treasury’s regulatory action.
Bitcoin Hash Rate Crash:
Hash rate is basically the computing power required by a network to mine bitcoin. The power black out in China’s Province Xinjiang brought the hash rate to a half. Xinjiang is house to a large number of bitcoin miners.
Bitcoin price follows the hash rate. Thus, BTC/USD price went down quickly. The power ourtage in China is expected to stay for some time. Neverthless, analysts belive that its impact on bitcoin’s price is temporary. Once the hash rate fully recovers, the price will rebound.
Bitcoin Market is speculative. It depends on sentiments of traders and investors. The news of U.S regulatory action against some crypto related financial institutions took the price of currency from 59,000 to 52,000 in minutes. This resulted in liquidation of almost $10 Billion.
U.S. TREASURY TO CHARGE SEVERAL FINANCIAL INSTITUTIONS FOR MONEY LAUNDERING USING CRYPTOCURRENCIES -SOURCES
— FXHedge (@Fxhedgers) April 18, 2021
The news is neither confirmed nor rebuffed as of yet. However, it did give rise to panic in crypto circles.
At the time of this writing, bitcoin’s price is at $55,268. The mature trader of crypto are positive reagsrding the future of currency. They consider it just a road bump towards the destination of $10M.