Willy Woo: Massive power outage in China made bitcoin fall to $50,000
A popular cryptocurrencies market analyst Willy Woo has pegged the recent Bitcoin crash to power outages in Xinjiang, China, the province that accounts for close to one-quarter of the global hashrate based on information by the Cambridge Bitcoin Energy Consumption Index.
Willy Woo: Massive power outage in China made bitcoin fall to $50,000 (Image: Cryptocratist)
Going into the details, Woo conected recent flooding in a local coal mine that trapped 21 miners underground with the slump in Bitcoin price that followed. According to Woo, the events are connected.
Bitcoin hash rates (Image: Ycharts)
Chinese miners went offline 3hrs into the difficulty adjustment.
The difficulty adjusts every 2 weeks to match the natural increase in hash rate from miners. This keeps block times to a steady 10 mins. If you're going to slow the network down, this is the best window to do so. pic.twitter.com/qyA0nrtfhr
— Willy Woo (@woonomic) April 19, 2021
The analyst noted that 9,000 BTC were sent to Binance on April 16 and stipulated that someone with knowledge of what was going on in China must have carried out the transaction.
While Woo’s opinion seems well-founded, he naturally found a few opposite views with Adam Cochran from Cinneanhaim Ventures, who described “the idea that a power outage last night in a mining region in China led to the dop in $BTC” as “utter nonsense.”
You might have seen charts around claiming that there is some sort of link between the mining hash-rate and Bitcoin's price drop.
I've seen all sorts of words thrown around with this chart including 'causations' and 'correlations' by a lot of people who don't math. pic.twitter.com/Gfog3Sk8Wo
— Adam Cochran (@adamscochran) April 18, 2021
Bitcoin is currently trading at $55,281.60.
With informations: Gambling News