A large bloodbath in which bitcoin swims with altcoins.

Bitcoin (BTC) price is down 10% in the last 24 hours to fall below $55,000.

At the time of writing this article, Bitcoin is trading at $55,015 with a market capitalization of $1.027 trillion.

This massive price crash resulted in the liquidation of nearly $10 billion worth of bitcoin within an hour.

When investigating the matter a little, there was an unconfirmed tweet bearing the news of the US Treasury imposing fees on crypto institutions for their involvement in money laundering, which we referred to in an article:

An unconfirmed tweet storms the crypto market and makes it fall by more than 290 billion dollars

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The second and main reason that caused the crypto market to bleed is the power outage in the Chinese region of “Xinjiang” which caused a large part of the Bitcoin network to go out within 48 hours.

This outage was due to maintenance supervised by the competent authorities after the massive floods that affected power stations in China.

It is known that a large part of the Bitcoin mining process is located in China, where the Chinese “Xinjiang” province is one of the regions where a large part of Bitcoin miners are active.

According to Chinese miner Jiang Zhuoer, the Xinjiang coal mine accident caused blackouts in all mines for safety inspections, which reduced the hash rate of the entire network by about 21.56% and 36 EH. pic.twitter.com/Fc6xJXXlxD

– Wu Blockchain April 17, 2021

With these conditions, the bitcoin price collapsed dramatically which led to further price correction.

This is confirmed by crypto market analyst Willy Wu that bitcoin’s hash and price are always linked.

Thus, in the wake of the power outage in Xinjiang province, today’s price action was followed by the collapse of the Bitcoin hash.

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Buying opportunity for Bitcoin investors:

With the latest data from Glassnode, Willie Wu reports that the hash has been fully recovered:

Price and hash rate have always been linked.

This is the BTC price against today’s hash rate crash (from the Xinjiang blackout). pic.twitter.com/mywEZLHlA0

– Willy Woo (woonomic) April 18 2021

Thus, this drop could represent a great buying opportunity for those who have been waiting to get in on Bitcoin.

Involved Another famous Chinese journalist in the crypto arena measures an important metric called “S2F Reversion”.

According to the data provided by this indicator, the Rebound Index (S2F) has fallen by 1.82 against the sharp decline in Bitcoin, and according to this Chinese journalist:

Compared to the decline of Bitcoin, the index has decreased significantly, and this may mean a reliable buying opportunity.

According to data from Reversion CryptoQuant-S2F, with the sharp decline of Bitcoin, the index fell to 1.827126. Compared to Bitcoin’s decline, the index has fallen significantly, and may hinder a reliable buying opportunity. pic.twitter.com/b8yXf2wteI

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– Wu Blockchain April 18 2021

Besides Bitcoin, the overall cryptocurrency market has fallen by 13% and lost more than $150 billion.

The “Wu Blockchain” Twitter account explains that there was a big rush of buyers on the Chinese exchanges, but the situation turned after the “Xinjiang” incident and the news of Turkey’s ban on cryptocurrency payments, and Coinbase executives selling their shares.

To turn the market’s path from green to red and enter a continuous downward process until the publication of this article.

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