The cryptocurrency market seems to have found direction, but it might not be the one you were hoping for. The vast majority of coins are under heavy losses, ranging from 3% to lows of 10%. Bitcoin (BTC) has once again shocked investors after a sharp sell-off Tuesday saw it quickly drop $1,000 in value during a single trading session.
Over the course of 30 minutes, beginning at 16:00 UTC on Sept 24, prices dipped below $8,000 — its lowest point since June 12 of this year. In addition, $30 billion has been drawn out of the market over a 24-hour period as investors sought to close their positions amid a selling frenzy. The digital currency fell as low as $7,944, before bouncing back to $8,500 later. At the time of this article, it sits just below $8,500.
The plunge can be partially attributed to Bakkt’s predictable slow start. It falls into crypto’s peculiar behaviour of selling the news: now that anticipation is gone, there are few reasons to expect another dramatic rise, leading short-term traders to sell.
Bitcoin loses 30% hashrate
Bitcoin’s hashrate plunged 30% today after a steady rise in the previous weeks.
The cause isn’t immediately evident. There have been no major natural disasters in Sichuan or Irkutsk, where mining is concentrated. Hashrate by pool distribution remains relatively stable, with only a small chunk consisting of unknown miners. Possible hypothesis is a large miner, or several smaller ones, are shutting down their old Antminer S9 ASICs. The model has been a staple of Bitcoin miners for years, until it was recently superseded by the newer S17. The sudden hashrate loss will mean that the Bitcoin network will add blocks more slowly.