• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Bitcoin
Nexo Logo

Bitcoin Crashes to 2018 Low, Could Falling Hash Rate and BCH Civil War Be to Blame?

Cole Petersen by Cole Petersen
4 years ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

As Bitcoin spirals to new 2018 lows and drags the enitre cryptocurrency market down with it, investors and analysts are becoming increasingly interested in the factors that could be contributing to this drop that extends further than simply a lack of buying volume and increased selling pressure.

At the time of writing, Bitcoin is trading up marginally at its current price of $3,800, posting slight recoveries from this weekend’s drop, where the cryptocurrency’s price fell to new 2018 low in the $3,500 region. Following BTC’s drop to these levels, it sharply bounced back to highs of $4,100, before falling back to $3,600.

The $3,600 region may prove to be a new level of support for BTC, which quickly bounced earlier this morning when hitting this price level. Whether or not this relatively minor bounce continues or fizzles out will prove whether or not this price level is the cryptocurrency’s next support level.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Bitcoin’s unprecedented drop has affected the entire cryptocurrency markets, with many altcoins setting fresh 2018 lows, including Bitcoin Cash (BCH), which is currently trading at $180, and Ethereum, which is currently trading at $109, slightly higher than its 2018 low of $100, which was set this past Sunday.

Related Reading: Bitcoin Cash Extends Loss to 7%, at Risk of Dipping to New All-Time Low

What Could Be Causing Bitcoin to Drop?

The 2018 drop of the number one crypto has extended far beyond simply a boom and bust market cycle, and now rivals previous drops that were caused by traumatic industry events, including the 2014 Mt. Gox hack.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Two possible factors contributing to the sharp market decline is community division stemming from the ongoing Bitcoin Cash civil war, which has polarized the cryptocurrency industry, and Bitcoin’s falling hash rate, which is the result of miners shutting off their rigs.

Earlier this month, BCH underwent a notorious hard fork that separated the cryptocurrency into two fragments: Bitcoin Cash SV and Bitcoin Cash ABC. The SV version is supported by Craig Wright, who is commonly referred to as “Fake Satoshi” due to his claims that he is the elusive founder of Bitcoin. The ABC version, which is simply the original Bitcoin Cash, has the support of major organizations, including Chinese mining giant, Bitmain.

The hard fork has created a division in the cryptocurrency community that has likely siphoned trading volume away from Bitcoin Cash ABC and caused many investors to lose a significant amount of money, therefore decreasing market sentiment and investor morale.

Furthermore, Bitcoin’s falling hash rate may be another factor contributing to its price drop. The hash rate is the direct result of the number of miners that are contributing computing power to BTC, which has been on decline due to Bitcoin’s persisting bear market. There are even rumors circling that Chinese mining groups are selling their GPUs for scrap due to the unprofitability of mining.

Charles Hayter, the CEO of cryptocurrency comparison site, CryptoCompare, spoke to CNBC about Bitcoin’s falling hash rate, saying:

“Bitcoin has been correlated to its hash rate and with it now falling, so is the price. The idea is that the hash rate gives some idea of what underlying opex (operating expenses) and capital costs people are willing to utilize to generate Bitcoin and give it a benchmark price.”

Despite the low prices and seemingly endless bear market, investors ought to remember that there are events right around the corner that have the potential of reversing the markets, including Bakkt’s launch in late-January, and the SEC’s verdict on the VanEck/SolidX Bitcoin ETF in early-2019.

Featured image from Shutterstock.
Tags: bitcoinBitcoin Cashbtcethereumhash rate
Tweet123Share229ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Related Posts

Crypto starts week Positive, Bitcoin Bulls Prep For A Breakout

Bitcoin Dominance Remains High As Market Sell-Offs Settle

22 hours ago
Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

1 day ago
bitcoin

Perp Traders Remain Quiet As Bitcoin Struggles To Hold $30,000

1 day ago
Bitcoin on-chain metrics

Bitcoin On-Chain Activity Throttled After LUNA Collapse

2 days ago
Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards

Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards

2 days ago
Bitcoin

Bitcoin Trading Volume Plummets Down From Recent Top

2 days ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Introducing Zenith.Finance, a dark-horse lending protocol crypto players should notice recently

May 27, 2022

An introduction to Capricorn.Finance

May 27, 2022

The Web3 community platform Mojor launched the alpha version

May 27, 2022

LBank Exchange Will List Value Interlocking Exchange Coin (VIC) on May 30, 2022

May 27, 2022

LBank Exchange Will List TEAK COIN (TEAK) on May 30, 2022

May 27, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.