According to one analyst, a massive power outage in one part of China has caused a sharp fall in bitcoin.

According to the Quintel Telegraph , Willy Woo , a blockchain data analyst, is investigating a power outage during a recent flood incident at a mine in Xinjiang, China.

 Electricity was cut off throughout the area to facilitate relief efforts for 21 miners trapped in the basement. 

According to the Cambridge Bitcoin Energy Consumption Authority (BECI), Xinchiang controls about a quarter of the Bitcoin network’s popularity. 

Yesterday, the analyst witnessed the biggest daily drop in Bitcoin network awareness since November 2017. According to the Ycharts website, the event reduced the population from 172 million per second to about 154 million TH / s.

_{Bitcoin Network Alert. Source: Ycharts}

Willy Wu attributed the sharp fall on April 18 to a sudden drop in alert caused by a power outage in China’s Xinjiang region. He referred to the transfer of 9,000 bitcoins from the Bainance exchange on April 27 and speculated that the bitcoins were transferred by a whale that was already aware of the incident.

With quarterly sell-offs in the futures markets, the downtrend liquidated $ 4.9 billion in bitcoin and $ 4.4 billion in margin trading in the altcoin markets, and with a new record of more than one million accounts, it lost about $ 9.3 billion.

Were. However, not everyone agrees with Willy Woo’s analysis. For example, Adam Kochran , a business partner of Cisnheim, called the idea of ​​a power outage in China’s mining region as the cause of the Bitcoin crash completely unfounded.

Wu has found that whales with a long-term investment approach that rarely sell bitcoins have made heavy purchases during the downturn.

 According to him, below $ 50,000, the largest bitcoin price discovery cluster has been forming since $ 10,000. 

He adds that the acceptance of bitcoin as a trillion dollar asset is quite serious and that 13.5% of the total bitcoin inventory has been transferred on an over-the-counter basis after its market value has exceeded $ 1 million.

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