Bitcoin (BTC) has sunk $7,066 from its Friday highs — about 11% over the weekend — and traded significantly below the $60,000 levels at press time late Sunday. Meanwhile, Dogecoin (DOGE) and several other cryptos are continuing to shoot up.
What Happened: The apex cryptocurrency traded 7.13% lower at $56,528.65 at press time. BTC has fallen 6% over a seven-day trailing period.
Some other cryptocurrencies including DOGE did not follow BTC’s lead and were seen trading in the green at press time.
DOGE was up 6.76% at $0.31. Neo (NEO) soared 31.29% at $125.44 and Solana (SOL) shot up 27.06% to $32.16.
Ethereum (ETH) is largely mirroring BTC’s decline and has fallen 11.6% since its Friday highs. As of press time, the second-largest cryptocurrency by market cap traded 4.57% lower at $2,252.33 in a 24-hour period.
Last week, both BTC and ETH hit their all-time highs. BTC and ETC traded 12.52% and 11.55% below those levels at press time.
The mean reason for the decline of BTC over the weekend was a power outage in China’s Xinjiang region where a large portion of the world’s BTC is mined, as per Reuters.
Why It Matters: People “may have sold on the news of the power outage in China and not the impact it actually had on the network,” said Luke Sully, CEO of Ledgermatic, a digital asset treasury specialist.
Analyst Willy Woo noted on Twitter that the price and hash rate of BTC have a strong correlation.
Price and hash rate has always been correlated.
This is BTC price vs today’s hash rate collapse (from the Xinjiang blackout). pic.twitter.com/mywEZLHlA0
— Willy Woo (@woonomic) April 18, 2021
Rumors of regulators in the United States charging unnamed financial institutions with cryptocurrency-related money laundering was another precipitating factor in BTC’s weekend fall, Cointelegraph reported.
Meanwhile, the funding rate — a measure of longs or buyers in the market — fell to its lowest since September 2020, which is an indicator of fear in the market, Cointelegraph reported separately.
A mix of fear, new investors with weak nerves, and rumors led to the decline in BTC but this left DOGE unaffected, according to CoinDesk.
DOGE hit an all-time high of $0.437 on Friday and has been on the upswing since it crossed the psychologically important $10 mark last week receiving a boost from social media. The cryptocurrency is on a run buoyed both by the “Doge Army” and Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk.
DOGE, SOL, and NEO have maintained the social momentum and occupied high places in the Stocktwits list of top ten trading tickers at press time.
Photo by Play Your Place on Flickr
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights