Bitcoin price regains some ground after weekend crash

imageCryptocurrency News2 hours ago (Apr 19, 2021 12:19)

© Reuters.

By Samuel Indyk – Bitcoin was trading higher on Monday after a weekend crash in prices saw the world’s largest cryptocurrency fall from over $62,000 to below $52,000.

The catalyst for the weekend move was said to be reports that the US Treasury was planning a crackdown on money laundering using digital assets, such as cryptocurrencies. However, the Treasury’s Financial Crimes Enforcement Network stated that is does not comment on potential investigations, including whether or not one exists.

Xinjiang blackout

A second reason for the decline was reports of a blackout in the Chinese region of Xinjiang, where large-scale cryptocurrency mining takes place. Around 50% of Bitcoin’s mining network is thought to be based in the region and maintenance works at several power stations reduced power over the weekend.

The Bitcoin hashrate dropped almost 50% after hitting an all-time high of 218 EH/s on Thursday, according to the cryptocurrency website

Bitcoin price

The decline over the weekend comes after the price of Bitcoin hit a record high last week just before cryptocurrency exchange Coinbase (NASDAQ:COIN) went public on the NASDAQ. A record high of just under $65,000 was hit on Wednesday as people view the public listing as further proof that cryptocurrencies have been accepted by the mainstream.

The rally has not just been in Bitcoin. Other cryptocurrencies have also joined the party with the popular memecoin Dogecoin now the fifth largest cryptocurrency after a 500% increase in the last week.

Nevertheless, despite the strong gains over the last year, regulation in the cryptocurrency markets is still a cause for concern.

Last week, the Turkish Central Bank banned payments for goods and services using cryptocurrencies, while India and China have also introduced laws clamping down on their usage.

The total market cap of all cryptocurrencies is now $2.05 trillion.

Bitcoin price regains some ground after weekend crash

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