Bitcoin Drops as Hashrate Declines With China Mining Crackdown

Bitcoin fell over the weekend amid a focus on Chinese mine closures and potential regulatory scrutiny.

The largest cryptocurrency fell 5.5% to $ 34,142 at 10:50 a.m. on Sunday in New York, falling for the fourth time in the last five sessions. Ether, the second largest, fell 5.9% to $ 2,095.

The hash rate in China drops significantly as bitcoin mines shut down, wrote Jonathan Cheesman, head of over-the-counter and institutional sales of the FTX crypto derivatives exchange in an email on Saturday, citing Report on Twitter by handle @bigmagicdao.

“In the longer term, most view hashrate exodus from China as positive, but could have led to inventory sales in the short term,” said Cheesman.

Cheesman also mentioned the Death Cross, which occurs when the 50-day moving average falls below the 200-day average, however noticed that “backtesting is not statistically significant” on the signal for Bitcoin. For example, when the mint saw a death cross in March 2020, that was the start of a year-long rally.

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