In response to a recent flooding accident at a local coal mine that saw 21 miners temporarily trapped underground after power and communications went down, there was a power outage in Xinjiang, China to enable facilitate the safety inspections, according to the famous crypto market analyst Willy Woo.
Xinjiang represents one-quarter of the global hash rate, according to the Cambridge Bitcoin Energy Consumption Index.
Also, since November, 2017, there was the largest drop in Bitcoin network hash rate yesterday and which the hash rate reduced from 172 million terahashes per second, to 154 millin TH/s according Ycharts.
A sudden drop in hash rate resulting to power outage in the Chinese region of Xinjiang was the cause of the Sunday’s violent cryptocurrency as stated by Woo.
Speculating that funds were likely sent by a “whale with closer knowledge to happenings in China.” , Woo points to 9,000 BTC that was transferred to Binance on Friday
Coupled with heavy selling in the quarterly futures markets, the downward momentum drove $4.9 billion worth of Bitcoin liquidations and a further $4.4 billion in margin calls in the altcoin markets — with a record 1 million accounts being liquidated.
However, not everyone agrees with Woo’s analysis, with Cinneamhain Ventures partner Adam Cochran describing “the idea that a power outage last night in a mining region in China led to the dop in $BTC” as “utter nonsense.”
Woo noted that long-term whales who rarely sell have been buying heavily amid the dip, adding that the lower $50,000 range is forming “the largest cluster of price discovery since BTC was below $10k.”