Bitcoin (BTC) sank $ 7,066 from its Friday highs – about 11% over the weekend – and traded significantly below the $ 60,000 levels on the late press Sunday. Meanwhile, it Dogecoin (DOGE) and several other cryptos continue to shoot up.
What happened: The apex cryptocurrency traded 7.13% lower at $ 56,528.65 at the time of going to press. BTC fell 6% over a seven-day period.
Some other cryptocurrencies, including DOGE, did not follow BTC’s lead and were traded in the green at press time.
DOGE rose 6.76% to $ 0.31. Neo (NEO) rose 31.29% to $ 125.44 and Solana (SOL) shot up 27.06% to $ 32.16.
Ethereum (ETH) largely reflects the decline of BTC and has fallen 11.6% since its Friday highs. At the time of printing, the second largest cryptocurrency by market capitalization traded 4.57% lower at $ 2,252.33 in a 24-hour period.
Last week, both BTC and ETH reached their everyday highs. At press time, BTC and ETC traded 12.52% and 11.55% below these levels.
The average reason for BTC’s decline over the weekend was a power outage in China’s Xinjiang region, where, according to Reuters, much of the world’s BTC is mined.
Why it matters: People “may have sold on the news of the power outage in China and not the impact it had on the network,” said Luke Sully, CEO of Ledgermatic, a digital asset treasury specialist.
Analyst Willy Woo noted on Twitter that the price and hash rate of BTC have a strong correlation.
Price and hash rate were always correlated.
This is the BTC price versus the current collapse of the hash rate (of the Xinjiang eclipse). pic.twitter.com/mywEZLHlA0
– Willy Woo (@woonomic) 18 April 2021
Rumors about regulators in the United States accusing anonymous financial institutions of money laundering related to cryptocurrency were another significant factor in the fall of BTC’s weekend, Cointelegraph reported.
Meanwhile, the funding rate – a measure of desire or buyers in the market – has fallen to its lowest level since September 2020, indicating fear in the market, Cointelegraph reported separately.
A mix of fear, new investors with weak nerves and rumors led to the decline in BTC, but it did not affect DOGE, according to CoinDesk.
DOGE peaked at an overall high of $ 0.437 on Friday and has been recording since it surpassed the psychologically important $ 10 mark last week and received a boost from social media. The crypto-currency is offered by the “Doge Army” and Tesla Inc. (NASDAQ: TSLA) Elon Musk, CEO.
DOGE, SOL and NEO maintained the social momentum and ranked high on the Stocktwits list of the top ten traders on the press.
Read the following: Dogecoin Creator Says What Meme Crypto Distinguishes Apart from ‘Thousands of Failed Coins’ is a Meme
Photo by Play Your Place on Flickr
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