Unexpectedly, the crypto-cornecy market capital fell below 100 billion dollars. This was against most analysts' expectations.
Almost every cryptocurrency has fallen in the red. Even the top 25 cryptocurrencies fell by 20 percent.
It was also revealed that Bitcoin hashrate jumped more than 30 percent earlier this week, which caused the breakout to be said.
“Bitcoin hashrate jumped over 30% in the last 24 hours. This confirms the price breakout in my opinion. Something big is happening. New hashrate subsiding. Maybe a warning shot across the bow. Estimated difficulty adjustment now 11% and falling,” reported the Bitcoin & Markets research team.
In these increases of Bitcoin's hashrate is bound to an eventful event or to the retreat of many miners.
According to various analysts and experts including Vergne, three important key points to consider when evaluating the price trend of bitcoin are:
- Rise in hash rate
- Development activity
- Media coverage
In consideration of the three abovementioned points, it seems evident that although bitcoin has been on a downward trend over the past few days, it is nearing a breakout.
Still, some community members had other theories to explain the sudden jump in bitcon’s hashrate. Some claimed that miners against BIP 148 allocated all of their hash rate into the bitcoin network to influence the activation of Segwit2x, an activation mechanism that would activate Segwit and guarantee the execution of a 2MB hard fork.
Luckily it is all recovering now!