Greenpeace alleges that Wall Street titans such as BlackRock or Vanguard contribute to the environmental harm derived from Bitcoin mining.
Bitcoin is dumping when writing, cooling off from May highs of nearly $72,000. Down roughly 10% from all-time highs, there could be more losses on the way, at least looking at the candlestick arrangement in the daily chart. Now, Willy Woo, a Bitcoin on-chain analyst, thinks the drop is primarily because of the ongoing “miner capitulation.” Woo notes that the network is now actively “culling” out weak miners, forcing them to shut down their operations. Related Reading: Blood In The Water? Ethereum Whales Circle As Price Drops As they exit, they sell their BTC holdings, running into thousands, if not tens of thousands, of the coin. Bitcoin Network “Culling” Weak Miners Because of market dynamics, the higher the supply, the lower the prices; Bitcoin is flushing lower, squeezing out even more miners. It remains to be seen for how long this will continue, but the impact of Halving is now increasingly evident. In Woo’s assessment, miner capitulation is necessary. Moreover, weak miners’ forced liquidation of BTC will only make the network more resilient. This is because the “cull” will eliminate less efficient players from the network, ultimately leading to a more robust system. On April 20, the Bitcoin network Halved miner rewards from 6.25 BTC to 3.125 BTC. Since miners depend on rewards as their primary income source, their revenue was slashed by 50%. If they choose to continue operating, they must not only compete with larger mining firms, most of which are public, like Riot Blockchain and Mara Digital, but they must also be very efficient, using modern gear for a higher hash rate. Staying efficient is a primary challenge, and rather than competing with public miners, some, as it appears, are folding and choosing to exit the business. Interestingly, even as “weak” miners shut down operations, the network hash rate–a measure of the total computing power–is still at near record highs. According to YCharts, the hash rate is 578 EH/s, down from 721 EH/s registered on April 23. Will BTC Prices Recover If Speculative Bets Are Purged? Woo also thinks there is a need to “purge the degen open interest in futures bets.” The analyst says excessive leverage trading on perpetual platforms like Binance, OKX, and Bybit must drop. The spike in degen trading has driven up the “paper Bitcoin,” or speculative bets. Woo explains that following the collapse of FTX in November 2022, speculative bets were wiped, allowing for a swift recovery in BTC prices in the following months. Related Reading: $2 Billion Crypto Funds Flow Into Market On Rate Cut Buzz If the coin is to recover and reject the current attempts for lower lows, the clearance of the current “paper Bitcoin” overhang will be required for a sustained leg up. Whether the “cleansing” of weak miners and speculative bets will help drive up prices remains to be seen for now. Bitcoin is trickling lower, confirming the losses of June 6. The immediate support lies at $66,000. If this level is lost, BTC could flash crash to $60,000 or even May 2024 lows of $56,500. Feature image from DALLE, chart from TradingView
This week’s Crypto Biz explores ARK Invest’s partnership with 21Shares, Galaxy Digital’s tokenized loan for Animoca Brands, Avail’s fundraising, the Toposware acquisition, and Bitcoin miners’ first reports since the halving.
This chip will enhance Bitcoin mining performance, minimize power consumption, lower costs, and reduce the environmental footprint.
In a striking revelation that challenges widely-held perceptions, Daniel Batten, a Bitcoin environmental impact analyst, disclosed that BTC mining was never officially banned in China. According to Batten’s research, despite widespread reports to the contrary, the so-called “ban” was actually a temporary suspension, and mining activities have largely resumed across the country. Bitcoin Mining Was […]
Kerrisdale Capital, a US investment firm, set off a storm of reactions on Wednesday with a series of public communications aggressively targeting Bitcoin mining companies. In a multi-part thread on X, Kerrisdale announced its campaign against what it describes as “snake oil salesmen” in the BTC mining industry, accusing them of being both a financial […]
Marathon Digital sold a large chunk of its Bitcoin production in May as miners adjusted operations after the halving event.
The short-seller has targeted MicroStrategy previously.
United States President Joe Biden has vetoed a resolution that would have overruled the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 121.
Following the investment, Tether expects close collaboration with Bitdeer across several key infrastructure areas, CEO Paolo Ardoino said.
The company has the financial capacity to consolidate the bitcoin mining space, the report said.
On-chain data shows the Bitcoin mining hashrate has sharply rebounded from its post-Halving lows and has achieved a new all-time high (ATH). 7-Day Average Bitcoin Mining Hashrate Has Just Set A New ATH The Bitcoin network runs on a consensus mechanism known as the “proof-of-work” (PoW). In this system, validators called miners compete with each […]
Marathon Digital, one of the world’s leading Bitcoin mining operations, announced a collaboration to overhaul Kenya’s renewable energy sector.
On-chain data shows the Bitcoin Puell Multiple has dipped into the “undervalued” territory for the first time in more than a year. Bitcoin Puell Multiple Has Observed A Plunge Recently As an analyst in a CryptoQuant Quicktake post pointed out, the BTC Puell Multiple has fallen recently. The Puell Multiple refers to an on-chain indicator […]
Bitcoin mining difficulty has adjusted upwards by nearly 2%, reaching over 84.4 trillion, as the network’s average hash rate surged past 600 EH/s. This increase comes amid growing optimism in the crypto market, particularly due to speculation about the potential approval of spot Ethereum ETFs in the United States. Notably, Bitcoin mining difficulty measures how difficult it is to find a hash below a given target. The Bitcoin network has a global block difficulty that adjusts every 2,016 blocks (roughly every two weeks) to ensure that the time between blocks mined remains around 10 minutes, despite the number of miners and their growing computing power. Related Reading: Bitcoin’s Significant Adjustment: Mining Difficulty Hits 18-Month Low – What’s Next For Miners? This difficulty adjustment helps maintain the network’s regular block time, ensuring stability and security. Significant Shifts In Bitcoin Mining The adjustment of BTC mining difficulty seen earlier this month marked a significant shift, as the metric saw a drop of nearly 6%, the largest decrease since the bear market in December 2022. This rebound in hash rate from the 580-590 EH/s range to over 600 EH/s aligns with a broader crypto market rally fueled by expectations of regulatory advancements in Ethereum products. The concept of mining difficulty is crucial for understanding how Bitcoin self-regulates the production of new blocks. The difficulty increases as more miners join the network, making it harder to mine new blocks. Conversely, the difficulty drops if the number of miners decreases, making mining easier. This mechanism ensures that the introduction of new BTC into the market remains steady and predictable, irrespective of fluctuations in the number of miners. This recent increase in mining difficulty coincides with a slight recovery in Bitcoin’s hash price, which had fallen to an all-time low at the end of April. The hash price, a metric developed by Luxor, a Bitcoin mining services firm, measures the expected earnings per unit of hash rate daily. It has rebounded from less than $50 per PH/s per day to around $54.6 per PH/s per day, providing a minor relief to miners after the recent market downturns. Bitcoin’s Price Movements And Future Expectations While Bitcoin’s price has experienced a minor dip of 2% in the last 24 hours, it maintains a weekly uptrend of 3.9%, trading at $68,132. This movement is closely watched as investors and traders await the US Securities and Exchange Commission’s decision on spot Ethereum ETFs, which could significantly influence the entire crypto market. In response to these developments, a prominent analyst known as BitQuant shared insights via social media platform X, predicting substantial growth for Bitcoin. According to BitQuant, Bitcoin is expected to reach $95,000, with a significant rise to $80,000 anticipated in May. Related Reading: Bitcoin Price Drop Below $70,000 Apparently Driven By Lack Of Interest, Glassnode Data Shows However, BitQuant also forecast a sharp decline from this local peak in June, maintaining that the overall timeline for this top has not changed. Several updates for those here to build generational wealth and not involved in day trading: 1. Yes, #Bitcoin is going to $95K. 2. Yes, $95K will extend to June, but the sharp decline from this local top will also occur in June, so the overall timeline for this local top hasn’t… pic.twitter.com/VFvMweBVbs — BitQuant (@BitQua) May 22, 2024 Featured image created with DALL·E, Chart from TradingView
Miners’ equity funding activity is expected to be lower in the second quarter of 2024, with less than $500 million invested as of mid-May.
The authorities destroyed two underground operations in Fujian and Hunan, and the police also froze 149 million yuan worth $20 million linked to the USDT banking operations.
Galaxy Digital’s net income climbed 40% in the first quarter of 2024, buoyed by record-breaking revenue from mining operations and management fees.
Bitcoin miner Core Scientific has posted $150 million in revenue from digital asset mining in the first quarter of 2024, boosting its gross margin to 46% from 26% in the previous year.
Bitcoin mining company Marathon Digital (MARA) is basking in the glow of a successful week, with its stock price surging after inclusion in the prestigious S&P SmallCap 600 index and the announcement of a performance-based executive bonus plan. However, the company’s fortunes remain tethered to the ever-volatile Bitcoin price. Related Reading: Legal Storm Brewing For […]
Alliance Resource Partners (ARLP), a publicly traded coal mining company, has successfully ventured into Bitcoin mining. The pilot project, which began in 2020, has generated significant revenue for ARLP by capitalizing on underutilized electricity at its River View mine. Related Reading: Shiba Inu Fees On Fire: What’s Behind The 500% Surge? Bitcoin Mining Success And […]
Stronghold announced its first quarter results for 2024 and revealed that it is considering a range of options to increase shareholder value including selling the business.
Bitfarms is actively working to triple its current hash rate capacity to 21 exahashes per second with a $240 million investment.
CryptoQuant CEO Ki Young Ji said that despite a drop in Bitcoin mining revenues since the halving, Bitcoin miners haven’t shown any signs of capitulation.
On-chain data shows that, for the first time in history, Bitcoin miners require more than 1 EH/s of daily computing power to mine just 1 token of the asset. Bitcoin Hashcoin Has Set A New All-Time High Now As explained by CryptoQuant head of research Julio Moreno in a post on X, the BTC Hashcoin […]
Data suggests the hype around the new Bitcoin Runes has severely dropped, something that’s not a good sign for miner revenues. Bitcoin Halving Effect Settles In On Miner Revenue As Runes Interest Drops A few days back, the much-anticipated Bitcoin Halving went through. Halvings are periodic events coded into the blockchain in which the BTC […]
PayPal’s Blockchain Research Group has joined Energy Web and DMG Blockchain Solutions to support “sustainable” Bitcoin mining. According to the paper, the collaboration “presents an opportunity to accelerate the clean energy transition” using crypto-economic incentives. Related Reading: Crypto Expert Confirms Rotation Has Begun Post-Bitcoin Halving, Are Investors Moving Away From BTC? PayPal Research On Bitcoin […]
Jack Dorsey's Block has completed its Bitcoin mining chip development, aiming to decentralize mining hardware supply and improve performance.
The post Jack Dorsey’s Block completes development of 3nm Bitcoin mining chip, now targets full mining system appeared first on Crypto Briefing.
The fourth Halving has now been completed for Bitcoin. Here’s how the miners have reacted to the event regarding their total hashrate. Bitcoin 7-Day Average Hashrate Hit New All-Time High Recently Halving is a periodic event for Bitcoin in which its block rewards—that is, the rewards that miners receive for solving blocks on the network—are […]
Analysts from investing banking firm Benchmark initiated coverage on Hut 8, issuing a “buy” rating and setting a $12 target for the firm’s share price.