The sudden drop in computing power combined with multiple negative factors caused Bitcoin to fall sharply.
The joy of interest rate cuts has not yet faded, and the cryptocurrency market has welcomed a "black opening". Bitcoin has retreated to the $85,000 mark, Ethereum has fallen below 3,000 points, and mining stocks have collectively plunged over 10%, leading to a bleak market.
This drop is largely attributed to the shutdown of mining operations in Xinjiang, which has become an undeniable trigger. The exit of over 400,000 mining machines has directly caused the overall computing power to plummet by 17%, significantly increasing the survival pressure on miners. To recoup funds, many miners have been forced to sell their Bitcoin, further intensifying the selling pressure.
And this is just the tip of the iceberg. The expectation of interest rate hikes in Japan looms large, forcing global arbitrage funds to close positions and exit the market. According to historical patterns, Bitcoin is unlikely to escape valuation adjustments; although the Federal Reserve has cut interest rates, the direction of subsequent policies remains unclear, adding more uncertainty to the market with the approaching non-farm payroll and CPI data; on-chain ETF funds saw a daily outflow of $350 million, leading to a faster exit of long-term holders, and panic sentiment is spreading in the market.
In the short term, $85,000 has become a key support level for Bitcoin, and the subsequent trend will depend more on the policy direction of global central banks and data performance. The volatile market in the crypto space continues, and this may be a good opportunity to take a position in p u p p i e s, which have great potential on the Ethereum chain. Welcome to learn more. $BTC
