Bitcoin rollback to $60K amidst a sharp drop in hashrate and a ban on cryptocurrency in Turkey

Bitcoin rollback to $60K amidst a sharp drop in hashrate and a ban on cryptocurrency in Turkey

After setting a new all-time high of $64,895 on April 14, Bitcoin fell to $60,811 for the first time today due to a decline in the hash power of Chinese mining pools and a ban on cryptocurrency payments proposed by the Turkish government.

New Milestones for Cryptocurrencies

Today, the Turkish Central Bank has introduced a new decree prohibiting the use of the crypt as a means of payment.

Against the backdrop of Turkey’s offer, China has also been hit by a natural disaster in a major cryptocurrency mining region. China accounts for 65.08% of the average monthly bitcoin hash rate in the world. The Xinjiang region contributes the most to the average monthly hash rate, sometimes accounting for up to 35.76% of the total.

However, due to flash flooding in northwest Xinjiang on April 11, 21 miners working on farms were trapped.

The incident forced the Chinese province of Xinjiang to resume all aspects of security inspections. The power outage has severely affected the hashrate of many of China’s leading Bitcoin mining pools, resulting in reduced computing power.

Source: Cambridge Bitcoin Electricity Consumption Index.

In this case, the hashing power of Chinese mining pools has plummeted.

According to the relevant reports, Antpool fell by 24.5%, Binance Pool-by 20%, -by 18.9%, and Poolin – by 33%.

BTC subsequently broke out of its previous stable state of $ 63k and returned to the downtrend. At the time of writing, bitcoin is trading at $60,690.

Bitcoin Price Analysis

The bearish MACD index indicates that the market is currently dominated by bears. The relative strength index has changed its direction towards the oversold zone, which suggests that Bitcoin will experience a pullback.

The previous high of $61,781 is a critical support point. If the bulls can push the closing price of BTC above $61,781, then the bullish momentum could prompt BTC to reach a new all-time high.

Conversely, an increase in the number of sell orders will push BTC below the support level of $60K, and may cause a more serious correction to $58K.

And what about Turkey?

The central bank explained the ban as possible serious irreparable risks that may arise with cryptocurrency transactions.

While many traditional financial institutions are more receptive to cryptocurrencies and have adapted their services to provide customers with direct or indirect access to them, others have gone the other way. Bitcoin bull and host of the crypto podcast” The Pomp ” Anthony Pompliano commented on Ankara’s decision to reject payments in cryptocurrency. He said:

“Bitcoin is winning in the free market, so governments and central banks are trying to rig the game. But it doesn’t matter. In these countries, adoption continues anyway.”

Financial institutions have capitalized on the Bitcoin boom to integrate it into their day-to-day businesses. US banking giant Morgan Stanley is among those who have welcomed Bitcoin. It is the first US bank to offer clients access to bitcoin fund investments, giving investors access to digital assets.

Despite these setbacks, the crypto sector seems to be gaining widespread and increasing acceptance, with the listing of the Coinbase crypto exchange on Nasgard making all the headlines.