Bitcoin (BTC) Tumbles Below $7,600 – Potential Reasons Include Miners And Binance Shutdown In China
Bitcoin (BTC) tumbled since yesterday, and it looks like the whole crypto market is trading in the red.
Lower lows and lower highs are setting in and, by the look of things, BTC might be heading to where it all began, according to some speculations: $4,000 – $5,000.
At the moment of writing this article, BTC is trading in the red, and the most important coin in the market is priced at $7,538.88.
Potential reasons for BTC’s recent fall are, according to crypto experts, miners and Binance shutdown in China.
Miners are the backbone of the network
Miners are an essential part of the BTC ecosystem and you may know by now that if BTC is not priced at a level where miners cannot reap profits or break-even, they will sell their BTC holdings.
AMBCrypto notes that this is precisely what we might be witnessing ay the moment.
“CIO of Atlanta Digital Currency Fund, Alistair Milne, stated a few weeks ago that miners were capitulating. His basis for the statement was a 7% drop in Bitcoin’s difficulty,” according to the online publication.
Bitcoin mining difficulty dropped the most since Dec 2018 after the last adjustment on 8th Nov 2019 (-7%)
… seems to confirm the cost of mining (on average) is ~$8000 https://t.co/vKiJgaxzZh
— Alistair Milne (@alistairmilne) November 11, 2019
One of the reasons for which miners might be capitulating or seeling off can be the increased hash rate and the steadily declining price of BTC.
Binance shutdown in China
The fall of BTC seems to coincide also with a report coming from The Block that cites some anonymous sources, according to info from the online publication the Daily Hodl.
The report reveals that the Shanghai office of Binance has been abruptly shut down by authorities. This comes after the accounts of Binance and Tron were banned on Weibo – one of the biggest social media channels in China.
The online publication mentioned above reveals that DonAlt said that it seems that BTC might be correcting after a surge towards $14,000.
“People talking about $3000 right now are being more unreasonable than people talking about new highs. A run from $200 -> $20k is going to take some time to digest,” he said.
He continued and said that “$3k was an overreaction to the downside. $14k was an overreaction to the upside. We’re now finding a middle ground.”
Stay tuned for more info on BTC and the digital assets’ trajectory.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.