After the precipitous drop in the price of bitcoin this weekend, which took its price from $ 59,000 to a floor of $ 52,000 in minutes, red flags were lit and analysis and speculation about the causes populated the media.
Having lost the support of $ 60,000 at the beginning of the weekend, BTC was quite stable before the earthquake that meant the liquidation of positions worth almost $ 10 billion in the last 24 hours and the fall of approximately $ 7000.
Analysts argue that a massive power outage in China’s Xinjiang mining center was the cause of the violent drop in the price of bitcoin. Various reports noted that the power outages occurred to facilitate safety inspections in response to a recent accident at a local coal mine that saw 21 miners temporarily trapped underground.
According to the Cambridge Bitcoin Energy Consumption Index, or BECI, Xinjiang accounts for almost a quarter of the global hash rate.
Other reports also noted that the weekend saw the biggest daily drop in the Bitcoin network’s total hash rate since November 2017, plummeting from 172 million terahashes per second, or TH / s, to less than roughly 154 million TH / s.
Furthermore, the weekend saw a movement of 9000 BTC being transferred to Binance, speculating that the funds were likely sent by a “whale with a closer knowledge of events in China.”