Solana leads crypto crash as Bitcoin and Ethereum slide

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Miners were able to quickly move their operations to North America after China’s regulatory crackdown, which is good news for bitcoin, analysts said. Photo: Camilo Freedman / SOPA Images / Sipa USA

Cryptocurrencies started with the largely declining weakness led by Solana, which fell to new weekly lows over the weekend.

Crypto, dubbed Ethereum’s killer, has been hit hard due to a high-profile distributed denial of service attack.

On Monday morning, Solana (SOL1-USD) was down 1.4%, to trade at $ 166 (£ 125). Bitcoin (BTC-USD) fell 0.2% to trade at $ 48,749. It is hovering below a key level of $ 50,000 and was down about 30% from its all-time high of $ 69,000.

Ethereum (ETH-USD), the second largest crypto by market cap, fell 0.6% and was trading at $ 3,988.

“The crypto market has attempted to recover in part as the appetite for risk gradually returns, but basic factors such as security weigh on some,” said Wael Makarem, senior MENA market strategist at Exness, at Yahoo Finance UK.

“Solana’s network suffered a few outages last week and has come under attack, emphasizing the importance of network security and its ability to remain operational at all times. These events have created doubts among investors as to the safety of Solana compared to its competitors.

Read more: Live Crypto Prices

It comes even as browser maker Opera announced a partnership with Solana Labs to add native support for the popular blockchain.

Meanwhile, Naeem Aslam, chief market analyst at Ava Trade, said the miners were able to quickly move their operations to North America after China’s regulatory crackdown, which is good news for the bitcoin.

“The most important lesson to be learned from this development is that the future outlook for digital coins remains positive, as shown by the blockchain space not only surviving but rather thriving even after facing its biggest stress test. “

Solana was down on Monday after suffering beatings over the weekend. Chart: Yahoo Finance France

He explained that Beijing waged its biggest crackdown on cryptocurrencies this year, forcing the biggest migration of crypto miners from China to the United States.

When the ban on crypto mining was imposed by Chinese authorities, the hash rate – a measure of the computing power consumed by miners on the bitcoin network – fell by nearly 50%, and therefore l blockchain space has taken a huge hit.

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Aslam said at the time that no one could predict that bitcoin mining would recover in just five months. Previously, mining in China accounted for between 65% and 75% of global mining.

Read more: Elon Musk: Tesla Founder’s Best Tweets in 2021 That Shook Markets & Crypto

Separately, Indian Prime Minister Narendra Modi’s Twitter account, which has 70 million subscribers, was hacked and a message was sent indicating that India had adopted bitcoin as legal tender.

The tweet sent from the @narendramodi account, which was immediately deleted, stated that the Indian government had officially purchased 500 bitcoins and was “distributing them to all residents of the country.”

Watch: What is bitcoin?

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