On Thursday, June 11, Bitcoin took a big hit resulting in an 11% reduction in its value. The coin that was steady at around $9500 to $10,000 before. Those who invested in bitcoin will be facing dramatic loss, and many will withdraw their capital as well.
There haven’t been any details on what was the reason behind this price crash of Bitcoin, but experts suggest that it is parallel to the 6.90% crash of dow Jones Industrial Average.
Now the question arising in everyone’s mind is, is Bitcoin’s fall in any way related to the Dow crash?
Well, the answer is yes and no. it is quite evident that right after Dow Jones’ crash, Bitcoin’s value also dropped by 10% on the same day. However, experts believe that the two crashes cannot really be related and the uncertainty of the market crash might have acted as a trigger for the Bitcoin price crash.
Although the hit was huge and many people faced losses, traders have predicted there is 125x more chance now that the largest cryptocurrency will be able to recover from this cash in no time as a long term liquidation has been triggered.
The Increase in Price and Liquidation in Mining
Bitcoin has remained more unstable this month than it has been the whole year. Bitcoin’s price climbed up to $9300 on June 7, just a day after the big flush. Soon after, its price plunged up to $10,000 and is still climbing the ladder at a fast speed.
The data provided by ByteTree shows that miners have started more than what they mine on a regular daily basis now. Before the Bitcoin took a hit, miners had been playing a major role in the decrease of the price of Bitcoin as rewards for miners had been reduced a lot, and those who could not see too much profit quit the business.
Bitcoin has been trying and repeatedly failing to maintain its price above $10,000 all-time high and traders are not able to predict what could come next.