For Bitcoin supporters, the past few days have been a turmoil due to unfavorable price movements. After falling to the $19,000 mark on June 18th, Bitcoin appears to have likely cleared the way for a new bottom. The recent Bitcoin mining data confirms this perspective.
Nevertheless, this newfound market price represents a variety of variations from the usual. The current price of about $19,393 is much lower than the last all-time high of $19,700 set in 2020. By this price movement, the 200-weekly moving average has also been surpassed.
Bitcoin Mining Cost Surpass BTC Price
According to the most recent statistics, the current price of BTC is closer to the mining expense, making it more difficult for small-scale miners to keep mining.
This also provides additional insight on Bitcoin’s true value in the present circumstances. A Bitcoin dealer named Doctor Profit described the scenario as unhealthy for typical miners.
Most interestingly, it is claimed that this might be a strong indicator that Bitcoin has reached its bottom. Though this remained unclear when a Bitcoin price reversal may occur, past performance provides some insight.
A few circumstances may have affected mining activities since very few miners will choose to mine if the price of Bitcoin lowers. Similarly, if the price of Bitcoin rises, more miners will participate, implying higher mining rewards.
Bitcoin Price Bottom Soon?
The analyst stated that if Bitcoin fell less than its given prices, it indicates the bottom of every cycle at about the same moment. This behavior was previously observed in January and November of 2017, and also most lately in a collapse caused by the pandemic crisis.
Furthermore, statistics from the analytics website Glassnode shows that money earned by Bitcoin miners has continued to plummet. Miners are far less encouraged currently, with mining expenses rising and the entire economic picture deteriorating.
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Source: https://coinpedia.org/bitcoin/top-reason-why-bitcoin-price-surge-above-20k/