The massive drop in the BTC hashrate has impacted the Bitcoin price negatively, now trading slightly above $31,000
A few hours ago, as AZCoin News reported, BTC was trading at $31,993 but now, over $160 billion has disappeared from the crypto market cap as Bitcoin price drops to the $30,000 region. Altcoins were also in the red as ETH dumped below $1,800.
By now the Bitcoin price has decreased to the $30,000 zone, losing almost 9%
Another weekend started with another adverse price move for Bitcoin as the asset dropped several thousand dollars below the $30,000 region. Recently, BTC continuously dropped every time the weekend started.
BTC at one point trading above $35,000, which was the highest price in the past four days but it seems the bears are not allowing any further rise. On the contrary, they exerted selling pressure, causing the price to drop even more.
In just a few hours, Bitcoin dipped below $30,000 although BTC initially bounced and recovered some losses, the bears continued to pressure and BTC sold below $31,100, at current levels.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin’s market dominance remains high, but that’s only because altcoins have been hit even worse. The market capitalization of BTC has dropped below $600 billion, recording a figure of $560 billion. Altcoins performed even worse. Ethereum is a prime example of this. It fell below $2,000 in a few days, but the 9% drop pushed the second-largest cryptocurrency below $1,800.
Ultimately, the cumulative market capitalization of all cryptocurrency assets has lost more than $160 billion in a day and is well beneath $1.182 trillion.
BTC hashrate is likely to remain far from its previous peak this year unless China softens its policy against miners
The impact of the Chinese crackdown on cryptocurrency miners and crypto traders on the Bitcoin price continues along with that of the low BTC hashrate that has lost over 50% from its all-time-high (ATH) of 171 EH/s. The ATH was reached on May 13 and by June 24 the BTC hashrate dropped to 83.4 EH/s – the low last seen after the Bitcoin halving in May last year.
The hashrate of Bitcoin began to slowly rise, and some Chinese miners’ machines began to land in Kazakhstan and North America | Source: BTC.com
The drop comes after the Chinese authorities started banning crypto miners in different provinces: Sichuan, Xinjiang (the two biggest crypto mining hubs), and others. Miners from China have begun to migrate to friendlier countries, such as Canada and the US, Kazakhstan.
However, it will be difficult to reach the previous BTC peak within the next six months unless the Chinese government eases its crackdown on miners.
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