Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin slumps 14% as pullback from record gathers pace

ForexApr 18, 2021 10:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A collection of bitcoin (virtual currency) tokens are displayed in this picture illustration 2/2

(Reuters) -Bitcoin, the world's biggest cryptocurrency, fell as much as 14% to $51,541 on Sunday, reversing most of the big gains it made over the past week.

Bitcoin was last trading down 10% at $53,991 as of 1320 GMT, a whopping $12,000 below record highs set on Wednesday. Smaller rival Ether, the coin linked to the ethereum blockchain network, dropped 10% to $2,101.

Data website CoinMarketCap cited https://coinmarketcap.com/headlines/news/chinas-xinjiang-blackout-and-bitcoin-hashrate-correction-caused-btc-price-crasha blackout in China’s Xinjiang region, which reportedly powers a lot of bitcoin mining, for the selloff.

Luke Sully, CEO at digital asset treasury specialist Ledgermatic, said in an email that people "may have sold on the news of the power outage in China and not the impact it actually had on the network".

"The power outage does expose a fundamental weakness; that although the Bitcoin network is decentralized the mining of it is not," Sully added.

Some widely-followed blockchain analysts on Twitter pointed to a sharp drop in "hash rate" due to the outage.

Hash rate refers to the volatility index that measures the processing capacity of the entire Bitcoin network, and it determines the power required by miners to produce new Bitcoins.

"Typically shocks to hash rate do not cause price drops. A hash rate reduction slows transactions, which ironically makes it harder to move coins to exchanges for sale. The recent price drop is well within the bounds of typical volatility, it is noise not signal," said Edan Yago, co-founder at Bitcoin-based decentralised finance protocol Sovryn.

The retreat in Bitcoin also comes after Turkey's central bank banned the use of cryptocurrencies for purchases on Friday.

Edward Moya, senior market analyst at OANDA, said cryptocurrencies had been ripe for a pullback.

"The market has become overly aggressive and bullish on everything," said Edward Moya. "It could have been any bearish headline that could have triggered this reaction."

Many cryptocurrency markets operate 24/7, setting the stage for price swings at unpredictable hours. Historically, retail and day traders have driven the moves.

Despite the sudden selloff, bitcoin is still up 89% so far in 2021, driven by its mainstream acceptance as an investment and a means of payment, accompanied by the rush of retail cash into stocks, exchange-traded funds and other risky assets.

Bitcoin slumps 14% as pullback from record gathers pace
 

Related Articles

Pound Jumps to 10-Week High as 'Scoxit' Worries Fade
Pound Jumps to 10-Week High as 'Scoxit' Worries Fade By Investing.com - May 11, 2021

By Yasin Ebrahim Investing.com - The pound held the bulk of its gains Tuesday after jumping to a 10-week high against dollar, riding a wave of post-election optimism amid fading...

Dollar Edges Higher; Commodity Currencies Limit Gains
Dollar Edges Higher; Commodity Currencies Limit Gains By Investing.com - May 11, 2021 1

By Peter Nurse Investing.com - The dollar edged higher in early European trade Tuesday, but gains were capped by the strength of commodity currencies on the back of rises in the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Neal Kaufman
Neal Kaufman Apr 18, 2021 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Watch it will flush out sll the stop losses and run for new ATH , same old story
HD HD
HD HD Apr 18, 2021 12:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's $Silver time to shine. buy physical! it's shiny.
John dsouza
John dsouza Apr 18, 2021 10:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
gone
Tobias Schrøder
Tobias Schrøder Apr 18, 2021 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buy gold
Edward Chong
Edward Chong Apr 18, 2021 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wow u really change fast. yesterday u were laughing at it.
Mohsen Shafeei
Mohsen Shafeei Apr 18, 2021 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No electricity means your wealth is gone
palmer long
palmer long Apr 18, 2021 9:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China has a lot of reason to trap us in their game, just as the US Banksters do us in the markets here in US. JPM ruins the gold and silver markets. WHERE IS ONE TO HIDE, BEFORE THE US RESET???
Jose Soto
B3BO Apr 18, 2021 9:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
just another entry price, thanks for the dip Bitcoin
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email