Bitcoin (BTC) records biggest reversal, crashes to $51,000

Bitcoin (BTC) registered its largest reversal record since February when it plummeted to around $51,000 after falling below the previous support level of $60,100.

This, in turn, caused a loss of around $9,000 in just four hours, causing a lot of damage to the crypto asset that has been on a bullish run just a few days ago.

The massive Bitcoin sell-offs are being linked to a number of factors which include the decline in the hash rate of Chinese BTC Mining pools, the ban imposed by the Turkish government on cryptocurrency transactions, and rumors of the United States’ FinCEN’s plans to stamp out money laundering activities related to crypto.

Factors briefly explained

Power outages for safety inspection in Northwest China, particularly in Xinjiang, led to a decline in the hash rate of mining firms. With Chinese entities accounting for 66% of the global hash rate in Bitcoin (BTC) mining, the dip caused panic among investors.

In the middle of the crisis in China, the Central Bank of Turkey proposed a new regulation that banned the use of cryptocurrencies in purchasing goods and services. The grounds: possible damage digital assets might cause and its irreparable nature.

Following Bitcoin’s not so surprising fall, US Treasury departments have sued some financial institutions for the use of digital currencies in money laundering activities.

It was like a house of cards that toppled one over the other and Bitcoin took its full brunt.

The aftermath of Bitcoin plunge

Statistics showed that other cryptocurrencies suffered the same predicament as the leading digital asset.

On April 18, Bitcoin’s liquidation reached $4.4 billion, Binance had $1.3 billion, Huobi Global liquidated $1.34 and OKEx had a total of $350 million.

Data show that more than 950,000 traders liquidated as much as $9.32 billion in just 24 hours, including the largest single order — a $69 million Bitcoin liquidation.

 

Image courtesy of Alesia Kozik/Pexels

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