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Crypto markets have been trading negatively over the last few days as most of the cryptocurrencies and altcoins have lost up to 30% of their value.
Bitcoin, the leading cryptocurrency, also experienced a price drop, something that has not common over the year.
Crypto markets price drop
The price drop experienced across crypto markets led to a lot of unanswered among crypto traders and investors.
Crypto analysts said that the crypto markets faltered due to a sudden reduction in Bitcoin’s hash rate. The hash rate fell from 98,12 EH/s on the 22nd of September, to 67,38 EH/s the next day.
This sudden drop affected Bitcoin’s value, and when the leading crypto falls, it usually takes the rest of the market down with it.
Soon after Bitcoin’s hash rate fell, the price of the crypto asset responded by losing over $1,600 of its value over 24 hours.
Following this price drop, at least three coins in the top ten fell by over 20%, and many altcoins suffered similar losses.
Hash rate climbs back up
Bitcoin’s hash rate began climbing back up almost immediately after it fell. After it fell close to 67 EH/s, the hash rate began to rise again, and it is currently above 90 EH/s.
Although the hash rate is going up again, several cryptocurrencies have already suffered the consequences of the sudden drop. Bitcoin itself is currently trading lower than it has in many months.
Following the recovery of Bitcoin’s hash rate, it is not clear whether crypto prices will also go up. Many members of the crypto community believe prices will react to the rising hash rate just as they responded to the hash rate falling.
If the prices do go up, traders who have purchased coins over the last 24 hours will be in a position to reap profits from their holdings.
Slow reaction to hash rate
As of now, Bitcoin’s price has not yet reacted to the rising hash rate. The crypto asset is currently trading around $8,300, and it will need investors to provide significant support at this mark.
The cryptocurrency is showing stability at its current price, but if it does not receive support, it may fall further.
Some analysts believe that from this point, Bitcoin will go on a rally that may see it reach the $15,000 mark.
The predictions state that the crypto asset will reach this price before the end of the year and after it goes through its halving in the first half of 2020, its price will likely to surpass its all-time high of $20,000.