Top line
Following the build-up of prices that kicked off the long-awaited debut on the Coinbase market earlier in the week, the cryptocurrency market fell early on Sunday after blackouts in China caused massive declines in mining rates. Bitcoin: closing prices and generating billions of dollars in settlements.
The market is ready, but bitcoin prices continue to fall by about 10%.
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Key factors
A nightly crash that began Saturday afternoon caused the total market capitalization of cryptocurrencies around the world by about $ 310 billion in less than 24 hours, reducing the market by more than $ 2.2 trillion to less. of $ 1.9 trillion around 8 a.m. East, according to crypto- data website CoinMarketCap.
As of 9:45 a.m. East, the market has risen again to about $ 1.95 trillion, but the price of bitcoin (floating at about $ 54,750) is still down 10.5% during the last 24 hours.
According to Bybt data, cryptocurrency settlements during the flash crash reached more than $ 10 billion this year, as the price of bitcoin fell more than $ 10,000 below its high of nearly $ 65,000 on Wednesday .
Analysts added the sudden losses to a sharp drop of almost 50% in Bitcoin’s hash rate, which measures the total processing power used to exploit the cryptocurrency and process its transactions, as a result of blackouts in the Chinese region of Xinjiang, which is home to one of the largest bitcoin mining networks in the world.
Caused by a coal mine explosion in Xinjiang on April 10, the blackouts took days to close the Bitcoin hash rate, which fell from an all-time high of over 215 exahash per second on Wednesday to near 120 exahash per second in early Sunday.
The price of bitcoin has dropped about 12% since the hash rate began to fall, but this year it continues to rise an impressive 750%.
Crucial budget
“Hash price and rate [have] “has always been correlated,” cryptocurrency researcher and earlier Forbes collaborator Willy Woo dit in a series of early Sunday tweets, which referred to a similar flash lock in November 2017 and noted that once the hash rate began to normalize in both instances, the price of bitcoin also began to recover.
Key background
While rising institutional adoption and inflationary concerns have raised the cryptocurrency market to meteoric highs over the past year, Bitcoin’s inflexible volatility has aroused on Wall Street the concern that the witness is a warehouse of unreliable wealth. That feeling, however, may be changing. Dallas Federal Reserve Chairman Robert Kaplan said Friday that despite Bitcoin’s volatility, the testimonial has proven to be a store of value. “The challenge [with] Bitcoin is the amount that will be adopted, right now, it’s clearly a reserve of value, “Kaplan said.” Obviously, it moves a lot in value, so it can prevent it from spreading too far as a means of exchange and wide adoption. , but that can change and that will evolve. “
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