Power Outage and Bitcoin Hash Crash Might be the Reason for Bleeding Crypto Market

The reason could be the poor outage and sharp drop in the hash rate for Bitcoin’s fall during the weekend which led to decreases the pace of the entire crypto market.

Power Outage and Bitcoin Hash Crash Might be the Reason for Bleeding Crypto Market

Analyst and charting expert Willy Woo pointed out that the largest drop in the mining hash rate in a single day since November 2017 was on April 17th. Willy added that the hash rate on the network has basically dropped in half, creating chaos that causes BTC to collapse.

According to the data from Bitinfocharts, the index’s average hash rate fell from 157.58 EH/s to 105.43 EH/s, the lowest level since December 2020.

Willy addressed the hash’s collapse due to the power outage in Xinjiang Province of China, the prime area for bitcoin mining. He added this was known even before the BTC price collapsed on the 18th April, citing local news on September 15th.

Willy further added that the combined selling pressure of these two events was enough to cause the price to fall below the $59,000 clearing level, while triggering a series of automatic sell-offs when the stop loss was triggered. Buyers have been buying the dip since Sunday’s low point and have since rebounded by around $4,000.

Bitcoin fell 12.5% ​​in hours over the weekend, from $61,450 on late Saturday to the lowest at $53,750 on the next day, According to data from Tradingview.

However, on Monday morning, Asian trading recaptured the wealth, but analysts are figuring out what reason caused the cascade that led to the record breaking $10 billion liquidations on the spot.

There were rumours among the community that the U.S. Treasury Department accused several financial organizations of using cryptocurrency to launder money that may have collapsed the crypto market meanwhile some are finding answers in the chain, it seems that the hash rate has also dropped sharply than the market.

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