The digital currency sector is in the midst of a big bloodbath, with the value of Bitcoin (BTC) plummeting to under $57,000. BTC is now valued at $$56,971 with a market valuation of $1.089 trillion at the time of writing. In less than an hour, this strong price drop ended in almost $10 billion in Bitcoin liquidations.
After doing some research, it seems that the outage in China’s Xinjiang region knocked out almost half of the Bitcoin network in just 48 hours. This outage was caused by repairs following major flooding and security issues at China’s power plants.
A large number of Bitcoin miners are based in China’s Xinjiang province. The BTC price has plummeted as a result of the outage, contributing to more price corrections.
Willy Woo, a well-known industry strategist, claims that the Bitcoin hashrate and value have always been connected. As a result of the Xinjiang outage, today’s market movement preceded the plunge in the BTC hashrate.
Bitcoin Investors Have a Purchasing Chance Opportunity
Willy Woo notes that the hashrate has been completely restored on a 6h MA, based on the new details from Glassnode. As a result, for those who have been hoping to invest in Bitcoin, this fall may be a great chance.
Another well-known Chinese reporter, Wu Blockchain, shows a crucial statistic known as S2F Reversion results. The Stock-to-Flow- (S2F) reversion index has plummeted 1.82 in response to Bitcoin’s dramatic decline, according to this results. He continues, “Compared to Bitcoin’s decline, the index has fallen significantly more, it may imply a reliable buying opportunity”
Together with Bitcoin, the entire digital curency industry has plummeted by 10%, dropping upwards of $150 billion in a matter of hours. According to Wu Blockchain, there was a huge rush of users at Chinese platforms, but many of them had network issues. Wu explains:
Affected by Turkey’s ban on cryptocurrency and the dumping of Coinbase executives, cryptocurrencies began to plummet. Binance, Huobi, etc. began to experience stuttering. Many Chinese had begun to buy bottoms, but the exchanges showed network errors.