Bitcoins Recent Fall In Price
Bitcoins Recent Fall In Price and why. Bitcoin dropped further below $60,000 to its lowest level in about three weeks amid a broader decline in cryptocurrencies in general, as concerns about U.S. taxation and China’s continued crackdown swirled.
Bitcoin Continues to Fall
As at 11:23 a.m. in Hong Kong on Wednesday, the largest cryptocurrency crashed down about 2.5% to $59,000 retreating for a fourth straight day. Ether fell 3.4% to $4,110 to its lowest level since Oct. 28. The top tokens were all nursing declines of at least 10% over the past seven days.
At the time of writing this article, Bitcoin‘s price stands at $56,254.00, Ethereum, Binance Coin, and Tether have the following values: $4,051.00, $534.91, $1.00 respectively.
“This minor pullback creates an attractive risk/reward to buy dips for a push higher in the weeks to come,” according to a Fund Strat technical strategy report Tuesday. “Downside targets should materialize this week,” with support for Bitcoin coming at key levels of $59,862 or $57,371, the report said.
Why the Fall?
Although crypto has performed well this year, concerns about tax provisions in the US infrastructure legislation and a continued crackdown by China have slowed down the momentum of what had been a very strong bullish movement in the past couple of months.
Hashing It Out
The hash rate, which measures the computing power of the Bitcoin network, has largely recovered since its mid-year swoon as China renewed its crackdown against the crypto industry.
Are Bitcoin and other Cryptocurrency Prices Totally Dependent on China
Cryptocurrency prices are not totally dependent upon China‘s decisions. But China is likely to become the world‘s most regulated crypto hub, therefore, China will definitely have a great impact on the demand and the price of bitcoin and other cryptocurrencies.
Cryptocurrency Mining and China
In Sept 2019 China accounted for over three-quarters of all Bitcoin mining.
But China’s crackdown initially led to a 38% fall in mining globally CBECI said.
In June, China told banks to stop facilitating transactions on Bitcoin and placed a ban on mining.
The research by the Cambridge Bitcoin Electricity Consumption Index (CBECI) suggests that China‘s share of global Bitcoin mining has fallen to effectively zero.
The latest data, which covers the four months to the end of August, suggests that most Bitcoin mining (35.4%) is now US-based, with Kazakhstan (18.1%) second and Russia (11%) third.
Things you Should Know Before Buying the Dip
Although buying the dip can be a very smart way to invest in crypto.
Below are things to note before buying the crypto dip;
- Know whether it is the right time to buy to avoid buying too late or too early.
- Understand how volatile crypto is.
- Choose your investment wisely.
Finally, buying the dip is not a bad idea but having a concrete idea of what the outcome of your decision will be.
