Wu noted that power outages were released late last week, with power outages to ease safety inspections in response to a recent flood in a local coal mine that trapped 21 temporary workers underground following a power outage. and communication.

According to the Cambridge Bitcoin Energy Consumption Index, or BECI, Xinjiang accounts for almost a quarter of the world’s retail trade.

Analysts point out that yesterday saw the largest daily decline in the total hash rate in the Bitcoin network since November 2017, when the hash rate fell from 172 million TH / s to below 154 million TH / s, according to Ycharts.

Prominent cryptocurrency market analyst Willie Wu attributed the sharp fall in cryptocurrency on April 18 to a sudden drop in the hash rate caused by power outages in Xinjiang, China.

Bitcoin Hash Rate: Ycharts
Wu points to 9000 BTC transferred to Binance on April 16 and predicts that the money was sent by “a whale who is more knowledgeable about events in China.”

Combined with strong sales in quarterly futures markets, the bearish momentum resulted in $ 4.9 billion bitcoin liquidation and an additional margin requirement of $ 4.4 billion in alternative currency markets – with record million accounts.

However, not everyone agrees with Wu’s analysis: Cinneanhaim Ventures partner Adam Cochran called “the idea that yesterday’s power outage in a mining area in China led to $ BTC doping” as “absolute nonsense.”

Wu noted that long-term whales, which rarely sell, actively bought in the midst of the economic downturn, adding that the low $ 50,000 range is “the largest price group since BTC was below $ 10,000”.

“The confirmation that BTC is a trillion dollar asset is very convincing,” he said, adding that 13.5% of the total BTC supply went through the chain, while Bitcoin’s capitalization exceeded $ 1 trillion.

Source: CoinTelegraph