TL; DR Breakdown
- Bitcoin recently experienced a flash crash that took it from the $60k to the $50k range
- Analyst Willy Woo thinks a power outage in China could be the cause
- Some people don’t agree with this assessment
Late last week, Bitcoin experienced a rather shocking flash-crash that saw the top coin plummet back to the $50k price range. On Sunday, April 18th, BTC went down from $61,400 to $54,200 before mounting a recovery to $57,600 and then dropping to $53,900. Since then, the crypto has been struggling to stay above the $55k range. At the moment, the price stands at around $56,500.
Now, one popular analyst thinks that the sudden price crash may have been caused by a power outage that occurred at a large mining installation in China.
Bitcoin hash rate dropped
According to the analyst, Willy Woo, the outage took the mining hub offline, resulting to a sudden drop in BTC hash rate. The said mining hub in Xinjiang is said to contribute roughly 25% of the hash rate in the Bitcoin network. At the time of the flash crash, the global hash rate had dropped from 172 million TH/s to 154 TH/s.
Whale activity
Willy also noted the whale activity occurring before the crash. Apparently, about 9,000 BTC was moved to Binance Exchange 2 days before the crash, something that Willy suggests might have been done by a Bitcoin whale with information about what was about to happen.
Also, whales have started accumulating during the dip. Willy noted that most of these whales have been longterm holders who rarely buy more. In Willy’s opinion, this development might have cause to validate Bitcoin as an asset of hitting $1 million at some point in the future.
Differing opinions
Still, not everyone seems to agree with Willy Woo. Adam Cochran, who is a partner at Cinneanhaim Ventures, doesn’t agree. Adam sent out Twitter thread airing out his opinion.
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptopolitan.com/bitcoin-crash-to-50k-due-to-power-outage/
