Bitcoin, the dominant player of the crypto community, has taken a massive hit only a couple of hours back, and its price dropped from$65k (all-time high) for Bitcoin directly to the level of $51k and then reclined to the $54k, which is the current estimated price value of Bitcoin within the crypto market. This is the biggest crash in the history of Bitcoin, not in the measure of percentage but by the measure of the sum. Projecting on the first $10k red hourly candle, it is pretty much evident that the hit is real, and Bitcoin has lost a proportionate value in terms of its pricing. The crash began when allegedly a fake news tweet containing some false information started to roam around.
The tweet was an announcement made by the treasury department regarding the sanctions on some of the Russian hackers because of some election interference. The whole fuss seems to be about SES assisting users to buy/purchase cryptocurrency and then using it to commence into fulfilling financial transactions; not only this, but their data did navigate all the way to third-party verification services that show that these particular individuals have even purchased the fraudulent identity documents as well.
Xinjiang Coal Mining Incident and Closing of Crypto Mining Farms
All of this pretty much doesn’t have to do anything with the current Bitcoin crash, but it does point towards the time when all of this happened, such as Bitcoin taking a heavy hit. The real problem seems to be the Xinjiang coal plant incident, which disturbed the Bitcoin mining operation, but many people were even trapped under the rubble where some even lost their lives. The regulators then speculated this incident, and plenty of things going wrong were found there with the operation of the mining farms, and due to this very reason, these were closed.
This led to a severe hash fall as the mining operation was kind of shaken to its core, which led to panic in the crypto market, hence this sudden crash. The hash fall is currently at 40% capacity, which is way less than what it needs to be; no mining means no new Bitcoin being created hence the crash.