The world’s most famous cryptocurrency, Bitcoin, fell by 14% to $51,541, reversing much of the previous week’s gains.
As of 1320 GMT, bitcoin was down 10% at $53,991, a whopping $12,000 below Wednesday’s record highs. A smaller competitor coin linked to the Ethereum blockchain network, Ether fell 10% to $2,101.
The drop was attributed to a blackout in China’s Xinjiang region, which power a large portion of bitcoin mining.
Luke Sully, CEO of digital asset treasury specialist Ledgermatic, speculated in an email that people “may have sold on the report of the power outage in China rather than the effect it had on the network.” Despite the steep decline, bitcoin is still up 89% in 2021 due to increased adoption as an investment and payment method, as well as a surge of retail money into stocks, exchange-traded funds, and other risky assets.