{"id":229717,"date":"2021-04-18T10:41:29","date_gmt":"2021-04-18T07:41:29","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-price-drops-to-52k-liquidating-almost-10b\/"},"modified":"2021-04-18T10:41:29","modified_gmt":"2021-04-18T07:41:29","slug":"bitcoin-price-drops-to-52k-liquidating-almost-10b","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-drops-to-52k-liquidating-almost-10b\/","title":{"rendered":"# Bitcoin price drops to $52K, liquidating almost $10B"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a30dd9700829\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a30dd9700829\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-drops-to-52k-liquidating-almost-10b\/#China_US_rumors_lead_the_BTC_sell-off\" >China, US rumors lead the BTC sell-off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-drops-to-52k-liquidating-almost-10b\/#No_panic_among_hodlers\" >No panic among hodlers<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin price drops to $52K, liquidating almost $10B <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) fell to sudden lows of $52,000 on April 18 in a timely reminder of how price action often follows hash rate.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/95c74563-16ca-4bd6-9712-8dd58c1f752c.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"China_US_rumors_lead_the_BTC_sell-off\"><\/span>China, US rumors lead the BTC sell-off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/\">TradingView<\/a>\u00a0showed a brutal hour for Bitcoin bulls everywhere early on Sunday as the market went from $59,000 to $52,000 in minutes.<\/p>\n<p>Having lost $60,000 support earlier in the weekend, BTC\/USD was still fairly stable before the snap price event, which <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bybt.com\/LiquidationData\">liquidated<\/a> positions worth almost $10 billion over the past 24 hours.<\/p>\n<p>At around $7,000, the hourly loss challenges the record reversal seen in February after Bitcoin hit $58,000 for the first time.\u00a0<\/p>\n<p>In the aftermath, analysts pointed to two events as potential causes: a hash rate crash and rumors from unnamed sources that United States regulators were about to charge unnamed &#8220;financial institutions&#8221; with crypto-related money laundering.<\/p>\n<p>Hash rate \u2014 an estimate of the computing power dedicated to the network by miners \u2014 crashed by almost half according to some estimates. This was due to a mass outage in China&#8217;s Xinjiang province, home to a large number of miners, which began two days ago.<\/p>\n<p>In a classic depiction of the old adage, &#8220;price follows hash rate,&#8221; BTC\/USD then caught up with reality.<\/p>\n<p>&#8220;Price and hash rate has always been correlated,&#8221; statistician Willy Woo <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/woonomic\/status\/1383672529995190281\">argued<\/a>, pointing to a similar event from November 2017. <\/p>\n<p>Woo added that as then, the impact on price action was temporary and that hash rate had meanwhile already &#8220;almost fully recovered.&#8221;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/eecff8a4-add7-438a-9ea7-a19ba44a8508.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin hash rate vs. BTC\/USD. Source: Willy Woo\/ <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>Coin Metrics co-founder Nic Carter was similarly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nic__carter\/status\/1383417849994104838\">unfazed<\/a> as the Xinjiang problems began, but forecast that media interest in the event would be significant.<\/p>\n<p>&#8220;If the outage lasts 3 weeks then bitcoin will have a historically large difficulty adjustment but I think that\u2019s unlikely \u2014 either grid comes back online or miners will move their hardware,&#8221; he said as part of a social media discussion on Saturday.<\/p>\n<p>Bitcoin&#8217;s difficulty declines when miners exit the network, but according to the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/btc.com\/stats\/diff\">latest estimates<\/a>, its next adjustment will only see a modest 1.8% decline.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"No_panic_among_hodlers\"><\/span>No panic among hodlers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Meanwhile, another topic allegedly roiling sentiment <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared to be a single tweet about U.S. legal action.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">U.S. TREASURY TO CHARGE SEVERAL FINANCIAL INSTITUTIONS FOR MONEY LAUNDERING USING CRYPTOCURRENCIES  -SOURCES<\/p>\n<p>\u2014 FXHedge (@Fxhedgers) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Fxhedgers\/status\/1383611847144730626?ref_src=twsrc%5Etfw\">April 18, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Surfacing right at the time of the price crash, Twitter account FXHedge <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/fxhedgers\/status\/1383611847144730626\">quoted<\/a> anonymous &#8220;sources&#8221; as warning over regulators taking unnamed &#8220;financial institutions&#8221; to court over money laundering related to cryptocurrency.<\/p>\n<p>No other details were given, but the tweet swiftly gained over 5,000 likes and almost as many retweets, with the $52,000 nosedive then ensuing.<\/p>\n<p>While mainstream media seized on the action, seasoned Bitcoiners were as cool as ever about what was just business as usual in a bull run.<\/p>\n<p>&#8220;Honestly, after you&#8217;ve been in the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> long enough, you go numb to Bitcoin price dips,&#8221; podcast host Steven Livera <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stephanlivera\/status\/1383637125636124675\">tweeted<\/a>. <\/p>\n<blockquote><p>&#8220;Just Bitcoin doing its thing on the way to $10M+.&#8221;<\/p><\/blockquote>\n<p>At the time of writing, BTC\/USD had recovered about half of its losses to trade above $56,000.<\/p>\n<p>Rafael Schultze-Kraft, co-founder and CTO of on-chain monitoring resource Glassnode, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/n3ocortex\/status\/1383677254320803842\">cited<\/a> a classic on-chain metric as proof that now was a perfect time to buy Bitcoin.<\/p>\n<p>The spent transaction output ratio (SOPR), which measures overall profit and loss, had &#8220;reset&#8221; for the first time since after March&#8217;s all-time highs of $61,700.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/2a42a3b4-5a6d-4c79-83bb-48d0c1a2d520.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin SOPR chart with tops and resets highlighted. Source: Rafael Schultze-Kraft\/ Twitter<\/em><\/figcaption><\/figure>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-drops-to-52k-liquidating-almost-10b\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin price drops to $52K, liquidating almost $10B &#8221; Bitcoin (BTC) fell to sudden lows of $52,000 on April 18 in a timely reminder of how price action often follows hash rate.\u00a0 BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView China, US rumors lead the BTC sell-off Cointelegraph Markets Pro and TradingView\u00a0showed a brutal hour&#8230;<\/p>\n","protected":false},"author":1,"featured_media":229718,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvYzkyNDI5MjItZDhmNi00ZmVhLThkOGUtNmI4ZTE4ODVjMjY4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,75462,73785],"class_list":["post-229717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-hash-rate","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/229717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=229717"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/229717\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/229718"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=229717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=229717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=229717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}