Bitcoin recently faced a drastic drop in the hash rate of total mining. In addition, there were a few unverified tweets that resulted in the cascading liquidations across the derivative markets in the cryptocurrency sector.
Bitcoin along with the extended crypto market witnessed one of its most gruesome crashes that led to an enormous amount of liquidations worth $9 billion. There are 3 most important factors that are considered to have triggered this negative activity.
Bitcoin Money Laundering Cases
Bitcoin prices have dipped to a sum of $50,900 low on Binance on 17th April, Saturday. On the other hand, the BTC price was seen at $51,300 on Coinbase. Within a span of 20 minutes, BTC declined by 12.3% owing to the reason that 1 hour ago there was a related tweet.
The US Treasury has claimed that they are currently investigating a few financial institutions over the use of illicit crypto. Nonetheless, Jake Chervinsky, a reputed crypto lawmaker, expressed his suspicions over this news as there have been no reported claims as of yet.
Others have pointed towards the building bearish pressure that might have stimulated this dip. BTC mining hash rate declined 40% within 1 week since a China-based coal mine stopped its operations in the Xinjiang area.
Sell-Off
$9 billion worth of long orders had been liquidated. Half of the entire amount was also liquidated by Binance users. Okex, ByBt, and Huobi liquidated $2 billion each. These traders were mainly long Ether with $1.07 billion and BTC with $4.94 billion.
Although there has been some purchase in dip activities in the Coinbase indicator, there is considerable volatility existing still. Short-term concerns persist due to the 50% yearly percentage rate of BTC on Binance.
