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Crypto Report - Bitcoin's flash crash

Bitcoin had a flash crash due to the brief Xinjiang power blackout in China which is home to a sizeable number of bitcoin miners. This was the first time such an outage occurred. Since bitcoin price and hash rate has always been correlated, cryptocurrencies had a flash crash lasting just a few minutes before bouncing hard. Mainstream media piled on the FUD bandwagon trying to come up with reasons why bitcoin crashed citing regulatory overhang, bubbles, and other reasons. This caused bitcoin to roll back over as more people sold into the bounce.

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Bitcoin's hash rate collapsed once before since bitcoin went online in 2009. The year was 2017 due to bitcoin's wars with bitcoin cash (BCH).
ImageBoth instances were buying opportunities for bitcoin.

Other metrics are showing this as a price low for bitcoin. Futures funding rates have mostly gone negative, a system reset if you will as a strong buy signal for cryptocurrencies. Another metric, SOPR (spent output profit ratio), has an excellent track record in calling minor lows for bitcoin.

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Don't be surprised in bitcoin retests lows as the news has not yet uncovered the real reason behind the flash crash, at least from doing a google search on 'bitcoin price' and skimming the various articles that have been published over the last several hours which are steeped in FUD (fear, uncertainty, doubt) on scrambling for reasons behind the price drop.
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This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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