Bitcoin’s (BTC), which briefly dropped to $58,000, has been in a period of consolidation. It now fluctuates between $61,000-$62,000 following a drop. Retail investors are showing renewed interest, alongside their institutional counterparts. However, there is a mixture of factors that affect the market. bullish signs Potential headwinds
Bitcoin Returns to Retail Investors
A recent social media postCrypto analyst Ali Martinez points out the return of retail investors as shown by the four-month record high for new BTC address numbers, which reached 432 026. This adds to the feeling that investors expect a substantial price rise in BTC over the next few months, in spite of recent volatility.
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Separate post Martinez, after analyzing BTC’s recent price movement, suggested that BTC is currently contained within a parallel trading channel. The largest cryptocurrency in the market could rebound up to $63,200, or even $63,800, if the $62,500 lower limit holds.
In particular, Martinez cites If BTC breaches above the resistance levels of $65,795 or $78,700, these are key targets.
Not all Bitcoin news is good. BTC Miners Have Increased Their Production in the Last 72 Hours sold over 2,300 BTC Approximately $145,000,000. The US and German governments continue to sell confiscated BTC.
The Mining Industry is Under Pressure
Due to the Halving of April’s network fees, and block rewards that resulted from this event, there are challenges for the mining industry.
Kaiko Research notes This is an important drop compared to the $45 that was charged in January. Halfing block rewards saw them drop from 6.25 BTC (previously) to 3.125 BTC.
The revenue squeeze is putting pressure on the miners and eroding their profitability, while other fixed costs such as wages, energy, rent, etc. remain unchanged. Further, the decrease in network charges has contributed to this reduction.
Bitcoin prices have historically rallied after events like halving to compensate the miners’ rewards. Bitcoin’s price has been relatively stable since the April 19, 2019 halving event. software update.
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The increased production of non-fungible tokens The BTC Blockchain. While this initially relieved the miners of their fees, they have now returned to average.
Bloomberg reports that Marathon Digital, the world’s largest Bitcoin miner, has sold more than 390 BTC since May.
Kaiko Research says that forced sales by miners could continue in the months to come. In order to consolidate the mining industry, miners will be forced to sell their assets. “consolidate assets” The following are some examples of how to get started: “increase efficiency.”
Notable examples include miner Riot Blockchain’s “hostile takeover attempt” Bitfarms Ltd., CleanSpark Inc. recently agreed to purchase Griid Infrastructure Inc. from Bitfarms Ltd. for $155,000,000 in an all-stock transaction.
As of the date this article was written, BTC The price is consolidating in its current range of $61,880. This represents a 2% decline in the 24 hour timeframe, and wipes out any gains made in the last 30 days.
Chart from TradingView.com, image from DALL.E
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Source: www.newsbtc.com