Bitcoin just fell 10 percent. What is the reason?

The day ended for the stock market is a very sharp drop of Bitcoin and almost all other coins. For a couple of hours the main cryptocurrency dropped by more than $ 500. The total market capitalization has fallen below $ 200 billion. The situation looks very bad. Especially given the fact that Bitcoin was again below the important support zone of $ 6,000.

At the moment, the main bitcoin trading at 5785 $ (average price per Coinmarketcap). This is the lowest asset value over the past 12 months. The holders altcoins can only sympathize — they cryptoperthite depreciated even faster.

Why Bitcoin fell

The environment is not set since the morning — even in the early hours Moscow time, Bitcoin was included in the local downtrend. Up to this point nothing boded trouble, because the asset itself has long been within a narrow horizontal channel. Phase stability are over, now we just have to wait, which line will become a new psychologically important support level for the cryptocurrency.

What is the reason for such a significant drain? Perhaps one of the prerequisites was a power outage to large miners in China. The authorities of the two regions of China with the cheapest electricity (Xinjiang and Guizhou) had stopped the flow of the main resource for mining companies due to outstanding bills.

Version hardforum Bitcoin Cash can be discarded, since the fall had an impact on BCH. Besides, it is not clear what a direct dependence was established between the market value of the two coins now. The rest of the altcoins with the top 10 fell by at least 10 percent. Worst affected Bitcoin Cash, EOS and Cardano.

Image source — Reddit

Well, at least the volatility of the stock market gained momentum. If you managed to predict all the events and opened a large short, congratulations. Can share your success or loss in our cryptodata.


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