Fear of regulatory moves, a brief hash rate collapse caused by a power outage in China are the main reasons for the drop in Bitcoin price.
China and US rumors leading the sale of BTC
Cointelegraph Markets Pro and TradingView showed a brutal hour for Bitcoin bulls everywhere early Sunday as the market fell from $ 59,000 to $ 52,000 within minutes.
Having lost the $ 60,000 support early on the weekend, BTC / USD was still fairly stable before the instant price event that liquidated positions worth almost $ 10 billion in the past 24 hours.
Analysts pointed to two events as potential reasons: a hash rate crash and rumors from anonymous sources that United States regulators would blame anonymous “financial institutions” of crypto-related money laundering.
The hash rate, an estimate of the computing power devoted to the network by the miners, has almost halved according to some estimates. This was due to a massive outage that started two days ago in China’s Xinjiang province, where a large number of miners lived.
“Price and hash power are always related,” says statistician Willy Woo, pointing to a similar incident in November 2017.