If you are one of those who expected Bitcoin to grow indefinitely and without a break, you are probably shocked by the current market situation, but the more experienced traders already know that this is a normal market development.
As you know, everything started last week with Elon Musk's statement that Tesla is suspending the possibility of buying a vehicle with BTC, referring to the increasing consumption of fossil fuels in BTC mining.
To make matters worse, China, specifically Sichuan Province, faced a power outage on Monday. According to several sources, the Sichuan region is the world’s paradise for cryptocurrency miners, and a high percentage of the hash rate comes from this area.
As a result of this outage, the Bitcoin hash rate lost up to 20%, which caused further uncertainty, which was reflected in the ongoing correction and fall in price.
This event has frightened many, but as a result it will only bring further positives, as the relevant provincial departments have begun to focus more on the allocation of hydropower, which means that China has already started and will make even greater efforts to reduce carbon emissions, which Elon Musk and Tesla himself referred to.
But let's also look at why Bitcoin is still one of the most powerful asset classes.
Bitcoin is still + 344% since last year, so when we compare it with the current drop, which is only - 40% from the measured ATH, Bitcoin is still in great condition.
