Market situation: Bitcoin is likely to fall temporarily



Some analysts say that despite the recent uptrend of bitcoin, the price is likely to fall, at least for a short time. According to experts, this decline may occur even before the fall in world stock market prices. In addition, with the rise in prices during this period, the sale of bitcoin diggers increased.

According to Quinn Desk, the price of bitcoin has fluctuated almost unchanged in the last 24 hours and has risen by about 12% in the last 7 days.

The return on digital currencies during this period varies from currency to currency. For example, in the last 24 hours, the price of some altcoins, according to Waves, THORChain and Aave, has risen by about 20%. Dodge Quinn and Shiba Inu, well-known market memes, lost almost 2% of their value during this period.

World stock market prices have risen after Russian and Ukrainian officials announced that the peace process between the two countries has progressed well. The rise in risky assets was accompanied, as always, by the devaluation of the dollar and gold. On the other hand, the Chicago Board of Trade (CBOE) index reached its lowest level in a month. This index is one of the most popular tools for assessing traders’ expectations about price fluctuations in stock options markets.

Reducing volatility in different markets is a sign of reducing the fears and anxieties of traders and may be in favor of a recent rise in the price of high-risk assets, such as digital currencies. However, some analysts say there are still signs of short-term price adjustments, which are even more pronounced in the digital currency market.

“Bitcoin is keeping pace with the growth of global stock market indices, and most financial market investor sentiment is primarily about the price of bitcoin,” said Alex Kupcikevich, an analyst at FxPro. This means that a temporary drop in the price of bitcoin may occur before prices fall on the stock market.

Sales of bitcoin diggers have increased

The following indicator is called “MPI” and measures the sales of bitcoin miners compared to their average sales in the last year. The index rose yesterday, indicating that bitcoin miners are now selling more dug units than usual.

Although intermediaries’ sales have clearly increased, the volume of shares transferred from their accounts to digital currency exchanges remains constant. This means that miners have recently traded some of the extracted units off the stock market and in the network with large buyers.

The growth of this index usually occurs at a time when the price of bitcoin has reached its peak and miners have an incentive to make money from the sale of their capital.

Market situation: Bitcoin is likely to fall temporarily
Graph of changes in sales of bitcoin diggers compared to average sales for the past year.

The latest jump in the price of bitcoin was accompanied by a record network hashrate. Hashit is the total computing power that miners allocate to the bitcoin network for processing consumer transactions.

Rising bitcoin prices directly affect miners’ incomes. For example, the Canadian company Bitfarms, which is active in the field of bitcoin mining, earned about $ 60 million in the last quarter of 2021. The company’s profits for the period of bitcoin mining increased by 33% compared to $ 45 million in the third quarter of 2021 and by 426% compared to the fourth quarter of 2020.

While the company’s revenue during this period has been very significant, the adjustment in the price of bitcoin in recent months may have a negative impact on revenue in subsequent periods.

Bitcoin hashrate growth has slowed slightly in recent weeks, as the price of bitcoin has just surpassed $ 46,000. The hash of the Atrium network has also increased in 2022 and, like bitcoin, has slowed in recent weeks.

The publication Market Situation: Bitcoin is likely to fall temporarily appeared first on the digital currency.

Leave Your Comment

Your email address will not be published.

Supportscreen tag