Woo noted that the reports of the power outages were released late last week and that power outages occurred to facilitate safety inspections in response to a recent accident. by flooding at a local coal mine that temporarily trapped 21 miners underground after power and communications went down.
According to the Cambridge Bitcoin Energy Consumption Index (BECI) Xinjiang accounts for almost a quarter of the global hash rate.
The analyst points out that yesterday saw the largest daily decrease in the Bitcoin network’s total hash rate since November 2017. The hash rate dropped from 172 million terahashes per second or TH / s to minus 154 million TH / saccording to Ycharts.
Willy woos, the popular market analyst for cryptocurrencies, attributed the violent crash of the cryptocurrency on April 18 to the sudden drop in the hash rate as a result of the power outage in China’s Xinjiang region.
Woo points to and speculates on the 9,000 BTC that was transferred to Binance on April 16 The funds were probably sent by a “whale with a better understanding of what is happening in China”..TO
Along with strong sales in the quarterly futures markets The downward momentum resulted in bitcoin liquidations valued at $ 4.9 billion and additional margin calls totaling $ 4.4 billion in the altcoin markets, resulting in a record liquidation of 1 million accounts.
Not everyone agrees with Woo’s analysis, however. Partner of Cinneanhaim Ventures, Adam Cochran, described “the idea that a blackout last night in a mining region in China caused BTC prices to drop” as “total nonsense”.“.
You may have seen graphs out there saying that there is a relationship between the mining hash rate and the falling price of bitcoin.
I’ve seen a lot of people unfamiliar with math post this chart adding all kinds of words, especially “causes” and “correlations”. This is utter nonsense. pic.twitter.com/Gfog3Sk8Wo
to???? Adam cochran (@adamscochran) April 18, 2021
Woo indicated that Long-term whales, which rarely sell, have bought heavily as the decline has taken placeand adds that the lower range of $ 50,000 makes “the largest pricing pool since BTC under $ 10,000”.
“The validation of BTC as a trillion dollar asset is immensely strong,” he said, adding the 13.5% Overall BTC supply has moved up the chain as Bitcoin’s capitalization surpassed $ 1 trillion.