Operating at a loss, mining farms begin to close and dispose of their machines. This was one of the factors that made Bitcoin’s hashrate (mining power) fall nearly 50% from its height in less than a month.
It is the first time in history that the hash-rate of bitcoin has fallen so significantly. From the outset, the increase in net computing power rose steadily, despite some periods of volatility. After the Cryptomania fell below the US$5,000 grandstand, things seem to have changed.
The crypto-currency market is showing oversold conditions after a sharp fall. If Bitcoin can maintain strength in the range of US$4,000 to US$4,500, this could lead to a consolidation period of several months.
However, if Bitcoin falls below the US$4,000 mark, which traders fear, then a short-term upturn to the dominant crypto-currency by the end of the year will become increasingly unlikely.
A few altcoins are up today, including NEXO, LRC, GNT, SNT, XIN, PIVX, MANA, REP and BAT. Of these, the NEXO rose by about 15% and the LRC rose close to 13%.