Cryptocurrencies have lost about $60 billion in less than a week following the collapse of Bitcoin, Ethereum, Litecoin, Ether, and XRP, which hit their lowest levels since 2017. Bitcoin tumbled to $4,237, a 13-month low, before regaining some support in the late afternoon session. If $4,207 support is breached, Bitcoin could crash even more to the weekly 200sma at $3,130.
After months of low volatility and declining volume, everything has been flipped upside down, and cryptocurrency bulls are left scrambling after a 30% liquidity gap opened up in the last several weeks.
According to CoinMarketCap.com, digital assets have lost approximately $700 billion of market value since the crypto-mania peak in December 2017. Since the peak, Bitcoin has sustained 87% declines as hash rates have also taken a dip.
According to eToro senior analyst Mati Greenspan, Bitcoin hash rates have fallen to the lowest levels since August, and this has led some crypto miners to shut down their rigs.
Hash rates have been sliding since October, and the last time the Bitcoin hash rate printed 45,000,000 was in mid-August.
Greenspan pointed out that the Bitcoin hash rate might still be up from the start of the year, but the trend is now starting to reverse.
Meanwhile, the 2018 bear crypto market is forcing many miners to operate at a loss, "now it’s more economic to turn it off and take it off from the rack to reduce cost on electricity and opex," tweeted Dovey Wan.
Wan shows alleged footage of a massive mining operation in China having difficult mining Bitcoin with depresses hash rates.
The video below shows a worker at one facility wheelbarrowing dozens of Avalon 741 7.3TH/s Asic Bitcoin Miners out of the building into a massive junk pile.
BRUTAL: this is what’s happening now in a China based mining site .... 😨😨 pic.twitter.com/gcN4lVTyBt— Dovey Wan 🦖 (@DoveyWan) November 20, 2018
Now, with the drop in Bitcoin hash rates, the difficulty to mine is also spreading to medium and small miners. They are now flooding their rigs on eBay as the crypto bubble collapses.