Bitcoin Value Plunges Nearly 14% after a Weeklong Hype for Cryptocurrencies

The price of Bitcoin – the world’s biggest cryptocurrency – has plunged nearly 14 percent in less than an hour on Sunday, reversing the large gains it had made over the previous week.

CoinDesk, a news site that specialize in digital currencies, said that the value of Bitcoin crashed drastically as low as $52,148.98 early Sunday after hitting an all-time high above $64,800 on Wednesday. The previous price of the cryptocurrency during the last trading was just over $55,795.

The flash crash of Bitcoin’s price is the latest indicator of how wildly volatile the crypto market is in the present.

According to CoinMarketCap, the power outage has been experienced in Xinjiang. The Chinese autonomous region was reportedly powering a lot of Bitcoin mining, for the selloff.

In an emailed statement, digital asset treasury platform Ledgermatic’s CEO Luke Sully said that people “may have sold on the news of the power outage in China and not the impact it actually had on the network”.

“The power outage does expose a fundamental weakness; that although the Bitcoin network is decentralized the mining of it is not,” Sully added in his statement.

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