- Bitcoin is heading into the weekend with a worrying 11 percent overnight drop, which puts the top cryptocurrency just above the critical support level of $30,000.
- BTC’s hash rate is at a 12-month low following China’s crackdown, but in all the uncertainty, one firm is beating the market, and is now up 78 percent.
Bitcoin is once again flirting with a critical support level as it heads into the weekend. The cryptocurrency is trading at $30,250, shedding 11.3 percent in the past day. If Bitcoin fails to find support at $30,000, analysts expect further capitulation, possibly to $25,000. The cryptocurrency’s hash rate is also declining massively following China crackdowns and is now at a 12-month low.
Bitcoin continues to bleed
Bitcoin has continued in its trend of making slight gains but shedding them barely a day later. In the past 24 hours, it has lost upwards of $3,700. The intraday low stands at $30,184, just slightly above the $30,000 support level.
In the past month, BTC has shown great resilience at $30,000 and has managed to bounce back every time it has hit, or come close to this level. In that time, it has only breached this support once, on June 22nd, when it dipped to $29,330, but managed to shoot back almost instantly.
The #Bitcoin investor group that is realizing most losses is the short term speculators.https://t.co/zViNuV9b7w pic.twitter.com/QqEd0Rxq0X
— Yann & Jan (@Negentropic_) June 25, 2021
The weekend may not bring good tidings, at least according to Crypto Quant. In a quick-take, the on-chain data platform told investors:
Bitcoin exchange netflows had an uptick in the past hour, [which is]somewhat concerning as stablecoins leave exchanges. Pairing this up with some of our internal wallet tracking software, we’re leaning bearish here into the weekend.
Hash rate at a 12-month low
The Bitcoin hash rate is down, but this is not a surprise to anyone who has been following recent events. China has been cracking down on the miners in its territory, hard. Estimates in the country claim that over 90 percent of the miners have been stamped out. This was always going to leave a dent on the BTC hash rate.
As one chart shows, the hash rate has dwindled with each move China has made. The latest is the central bank’s warning to commercial banks against processing crypto transactions.
.@nlw: “Anyone have a chart of #Bitcoin hash rate mapped against key recent China actions?”
h/t @intangiblecoins @coinmetrics pic.twitter.com/HWpSrijLTE
— takenstheorem (@takenstheorem) June 25, 2021
The hash rate stands at 109 EH/s. While it’s up from the low it hit on Tuesday at 90 EH/s, it’s still the lowest it has been in the past 12 months, according to data from YCharts And the bad news is that it could get worse. BitOoda predicts that the hash rate could go all the way down to 85 EH/s.
One firm is beating the market, up 78%
Despite the uncertainty and the bearish outlook, one firm has found a way to beat the market. LedgerPrime has focused on price discrepancies between the spot and derivatives markets, and it’s reportedly making a killing.
Shilliang Tang, the chief investment officer at LedgerPrime, told CoinDesk recently:
Our quant fund is now up 78%, having begun the second quarter at 62%. Cash and carry strategies have worked well during this quarter’s sell-off.
LedgerPrime puts its bets on carry trading, a strategy that promises riskless returns whether the market thrives or tanks.
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