Low Bitcoin Price Weighs on Crypto Mining Stocks
Bitcoin Mining
Modified Date:- Published Date:-Categories: Bitcoins
Bitcoin mining is the highly capital-intensive process of running the program that keeps the bitcoin network alive. Miners compete with each other to process transactions—using expensive, powerful computers, the winner receives a batch of newly minted bitcoins. The price of bitcoin has dropped to around $20,000, down 70% from its November highs, making mining less attractive. Miners as a group made less than $20 million per day last week, according to data from research firm Glassnode. This is down from an October high of around $72 million. Arcane Research analyst Jaran Melrud said miners are being forced to sell some of their bitcoin holdings. According to Arcane, miners are one of the largest bitcoin holders of bitcoin, with a collective holding of 800,000 bitcoins. Crypto asset manager IDEG forecast a high break-even price of $28,000, indicating that miners have been running at losses for several weeks. “The longer we stay below this level, the more likely we are for miners to adopt capital conservation strategies,” said Markus Thillen, IDEG’s chief investment officer, “such as selling bitcoin reserves or shutting down operations.”
Crypto Asset, Miners, IDEG Forecast, Bitcoin Reserves, Glassnode, Bitcoin Holders, Transactions