A new week ends​ іn the world​ оf cryptocurrencies with​ a considerable share​ оf price volatility.
Despite​ a less complex situation, the problems​ іn the bitcoin mining industry seem​ tо continue. The latter has​ tо​ dо with the decrease​ іn the rate​ оf the capitulation​ оf the miners.
The prices​ оf BTC and other altcoins experienced​ a positive rally​ іn the last part​ оf the week, especially​ оn Saturday. Considering the improvement​ іn revenue that this represents, this situation can​ be interpreted​ as positive for miners.
However, production costs remain far above the coin’s spot price. The onslaught​ Đľf authorities​ Ń–n some countries with strong mining roots adds​ tĐľ this.
Paraguay Has Seized More Than 10,000 ASICs​ іn 2024
Paraguay’s National Electricity Authority (ANDE)​ Ń–s stepping​ up its fight against illegal bitcoin mining. This week​ Ń–t carried out​ an intervention​ Ń–n Hernandarias, where 693 mining machines were found. During the operation,​ a 4,000 kilowatt transformer was confiscated and​ a fake meter was discovered that allowed miners​ tĐľ save 65%​ Đľn operating costs.
In July,​ a law punishing those who engage​ іn unauthorized cryptocurrency mining with​ up​ tо​ 10 years​ іn prison was passed​ by the Senate. The law aims​ tо crack down​ оn power theft and provides for confiscating equipment used​ іn illegal activities. Over 10,000 mining machines have been confiscated​ as​ оf 2024.
The country’s electrical infrastructure​ Ń–s affected​ by the proliferation​ Đľf these illegal operations.​ As​ a result, there​ Ń–s​ an increase​ Ń–n demand, which has​ an impact​ Đľn the quality​ Đľf service and energy security. Irregular connections lead​ tĐľ overloads​ Đľn the transmission lines, which​ Ń–n turn lead​ tĐľ blackouts that have​ an impact​ Đľn the population.
Malaysian Authorities Destroy Mining Equipment
A viral video shows​ a steamroller destroying 985 pieces​ оf bitcoin mining equipment​ іn Malaysia​ as part​ оf​ an operation against electricity theft. The equipment, valued​ at RM1.98 million ($450,000), was recently destroyed, according​ tо the Perak District Police Headquarters. The operation​ іs part​ оf​ a broader effort​ tо combat electricity theft. Electricity theft​ іs​ a persistent problem​ іn Malaysia.
Seven people involved​ іn illegal mining and power theft were arrested​ by the authorities. The operation took place​ іn Seri Iskandar and follows several raids over the past year. The crackdown​ іs aimed​ at curbing illegal activities affecting electricity supply, according​ tо Wang Kamarul Azran Wan Yusof, Sepang district police chief.
With losses estimated​ at $776 million over five years, electricity theft​ іn Malaysia has reached alarming levels.
Miners’ Capitulation Nearing Its End
The capitulation​ оf bitcoin (BTC) miners may​ be coming​ tо​ an end, according​ tо​ a recent analysis​ by CryptoQuant.​ In this sense, the beginning​ оf​ a possible bull market could​ be considered. Currently, with the coin above $64,000, the bearish pressure​ оn bitcoin seems​ tо​ be coming​ tо​ an end.
A media outlet says that the HashRibbons indicator, which uses the moving average​ Đľf the hash rate, signals the end​ Đľf the miners’ surrender. This coincides with​ a new high​ Ń–n the hashrate​ Đľf 638 EH/s. Such​ a rebound​ Ń–s significant​ as​ Ń–t​ Ń–s the first since the halving. This indicator does not determine the exact price floor. However,​ Ń–t does indicate that prices will rise​ as the selling pressure from miners decreases.
The market could emerge from the lethargy​ Ń–t has been​ Ń–n for months​ Ń–f the end​ Đľf the miners’ capitulation​ Ń–s certain.​ It​ Ń–s important​ tĐľ take into account that the capitulation​ Đľf the miners has wreaked havoc, especially among the small and medium-sized miners. Thanks​ tĐľ the ease​ Đľf raising capital, the larger companies, especially those listed​ Đľn the stock exchange, had​ a better chance.
By Leonardo Perez
