Another steep correction has just made the entire crypto market drop by 8% and the reports on power outages in China along with the rumors of the US Government crackdown being the possible reasons for the crash as we can see more in our latest cryptocurrency news today.
During the early Sunday hours, Bitcoin dropped to a low of $52,144 which marked another steep correction and a drop from the high of $61,271. Bitcoin took the rest of the market along and ETH dropped by 11.45% hitting a point of $1978 which Is the lowest price since April 7. By the afternoon, most coins rebounded to $2174 and now the altcoins were suffering the worst drop.
US TREASURY TO CHARGE SEVERAL FINANCIAL INSTITUTIONS FOR MONEY LAUNDERING USING CRYPTOS – SECURITIES LAWYERS FAMILIAR WITH THE YELLEN TASK FORCE PLAN SAID
— Andrew Fisher (@acpandy) April 18, 2021
XRP which made quite the gains recently after a few victories in court, got down by 20% while Bitcoin Cash which rallied by 25% in one day, now dropped to $20%. The crash caused delays on crypto exchanges as Binance started reporting issues with placing orders. Binance since resolved the problems but the market was still weak.
The rumors on Twitter mentioned that the crash was because of the impending charges from the US government over crypto money laundering. Darius Sit, the co-founder of the Singaporean crypto trading company QCP Capital said that he sees that as the main case. One account cited the source as securities lawyers familiar with the US Treasury Secretary Janet Yellen’s task force but the accounts provided no further evidence.
Xinjiang is facing a major power outage due to a coal mine explosion
Bitcoin hashrate drops almost 30% instantly lol
— Dovey “Rug The Fiat” Wan🪐🦖 (@DoveyWan) April 16, 2021
The Treasury announced sanctions against 16 groups and individuals that were linked to Russia with claims of using crypto to influence the 2020 elections in the United States. Separately, Bitcoin’s hash rate sank by 30%. Dovey Wan who is the founding partner of VC Firm Primitive Ventures attributes the plunge to a power outage in China in the Xinjiang province which houses the biggest BTC mining operations. The authorities cut the power following accidents in the coal miners in the province. The weekend crypto crash is a sobering reminder that the markets don’t go up forever.
As reported recently, Bitcoin miners were working through a vast backlog of unprocessed transactions while the computing power on the BTC network also plummeted. The price chart flashed red numbers and the harsh percentage that drops today after BTC dropped 15% overnight to lows of $52,144 and for many is the day to get out of the market. The exodus caused a huge traffic jam on the BTC blockchain.
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