Despite the recent drop, Bitcoin remains one of the most strong asset groups of the past year.
You would be surprised by the current market situation if you expected Bitcoin to expand forever and without interruption. More seasoned traders already know that this is natural market growth.
As you might recall, it all began last week with Elon Musk’s announcement that Tesla is suspending the option of purchasing a vehicle with Bitcoin, citing the growing use of fossil fuels in Bitcoin mining.
To make matters worse, China’s Sichuan Province, in particular, experienced a power outage on Monday. According to many outlets, the Sichuan region is a cryptocurrency miner’s heaven, with a large percentage of the hash rate coming from this region.
The Bitcoin hash rate dropped by up to 20% due to the outage, causing much more volatility, which was mirrored in the continuing correction and price drop.
This event has alarmed many people, but it will only have beneficial consequences because the relevant provincial departments have begun to concentrate more on hydropower allocation, indicating that China has already started and will continue to make greater efforts to minimize carbon emissions Elon Musk and Tesla have said.
Yet consider that Bitcoin remains one of the most important asset groups.
Bitcoin is now up 344 percent year to date, but as we equate that to the latest decline, which is – 40% from the measured ATH, Bitcoin is still in excellent shape.