Miners’ expectations for a good recovery may have grown due to the increase in the price of the most prominent digital asset by market capitalization. With BTC lingering around $22,000, the digital asset market would be trading in the green with a slight improvement regarding sentiment.
The current price of Bitcoin reached a position registered at $414 billion today from the $367 billion that the most prominent crypto-asset marked on July 1. Meanwhile, some curious events have been taking effect regarding mineral reserves.
According to research by Chart TodayIn the past two weeks, miners’ Bitcoin holdings have crashed significantly. This crash happened despite a slight increase in the price of Bitcoin this week. This situation could be a sign of decadence in the confidence investors have regarding a future price change.
The data presented a loss of at least 4,300 Bitcoins in the previous two weeks, possibly due to restricted positions against a possible Crashdown in the digital assets price.
The transfer of currencies to the derivatives market appears to be the general trend among Bitcoin miners. This activity could be the best indicator to show how a further drop in Bitcoin price could be imminent.
Mining companies, in general, keep carrying out their activities. Among their functions, there are the transfers to the derivatives market. The supply of miners has already decreased by 4,300 BTC in the last two weeks. There is a possibility that these transfers to the derivatives market are limitations against future falls and not the intention of selling digital assets.
Ups and Downs in Prices
According to Glassnode, Bitcoin miners are taking Bitcoin out of their reserves to back up this theory. Bitcoin mining incomes reportedly fell at least 56% from their previous peak. In addition, the cost of mining Bitcoin increased by 132%. This number is an exponentially huge percentage that painted the situation red for the mining community.
According to CoinGecko, the price is currently lingering at $21,679, down at least 0.07% from the previous 24 hours. The BTC price went up 11% in the past week, showing slight signs of improvement. A 24-hour high peak for the price was previously registered at $22,001.
Will Investors Overcome this Fear?
Cryptocurrencies are too volatile; it is one of the most drastic items worldwide. The reason behind its volatility is that digital assets go through transactional activities 24/7. It also faces trading operations that get carried out faster than any other market. The traditional market would take an entire year to achieve what crypto achieves in just a month.
When crypto faced a growth from $1000 to $20000, by mid-2018, it went down to at least $5000. When crypto gets compared to physical currencies like gold which lose value slowly over long periods, it is usual to note that crypto usually goes through drastic fluctuations.
However, some investors have started employing digital assets to get along with the dramatic variations of the market.
By: Jenson Nuñez
