- Analysts find reasons behind most recent Bitcoin price crash.
- The price of BTC crashed to the $86,000 price range.
- China tightens regulations and shuts down Bitcoin miners.
The price of the pioneer crypto asset, Bitcoin (BTC), fell below the price of $90,000 yesterday, where it was holding on for quite a long time. Today however, the price of BTC fell much further and sank to the $86,000 price range. Presently, analysts find reasons behind the most recent price crash towards $86,000. Will the price of BTC see another dump or will it hold at a support level?
Analysts Find Reason Behind Recent Bitcoin Price Crash
According to analytics, the price of Bitcoin (BTC), the pioneer crypto asset, is currently trading in the $86,000 price range and is boasting a total market cap of $1,721,605,104,722.09 and a 24-hour trading volume of $44,869,626,362.13. This means that the price of BTC is down by over 3.5% in the past 24 hours. The asset will need to pump almost 32% to set new ATH prices.
Most analysts believe that BTC has already topped at the $126,000 this bull cycle and is rearing to enter a bear market by the end of next year. In contrast, others believe this to be a prolonged correction before a greater ATH target can be hit. Meanwhile, altcoin enthusiasts expect BTc to continue in a steady sideways movement, allowing altcoins to take the spotlight and allow altseason to commence.
As we can see from the post above, this post explores the possible reasons behind the latest price dump that took Bitcoin (BTC) to its current price at the $86,000 price range. The post says that the reason Bitcoin fell today has to do with one simple reason, which has to do with China. The post states that it is China that’s crashing Bitcoin again and goes on to explain how and why.
To elaborate, the post says that China just tightened regulations on domestic Bitcoin mining again. In Xinjiang alone, a huge chunk of mining operations were shut down in December. Roughly 400,000 miners went offline in a very short window. You can already see it in the data: Network hashrate is down around 8%. When miners are forced offline like this, a few things happen fast.
Such as, miners losing revenue immediately, needing cash to cover costs or relocate, and some being forced to sell BTC into the market, all leading to uncertainty spikes short term. That creates real sell pressure, not the other way around. This isn’t a long-term bearish signal for Bitcoin. It’s a temporary supply shock caused by a dumb policy, not demand, the post consludes.
Lastly, it says not to be shaken as this play has happened before, China cracks down and shuts down miners, leading to a dip in hash rate, which in turn leads to a price drop. Eventually, the network adjusts, and the price of Bitcoin moves on. Finally, the post finishes by saying to expect more pain in the short term, but long-term, this doesn’t even matter. One response affirms this by saying short-term manipulation and long-term opportunities.
