Bitcoin
BTC$36 410.71

-3.15%

Ethereum
ETH$2 430.21

-2.30%

Tether
USDT$1.000622

0%

Binance Coin
BNB$369.92

-3.66%

USD Coin
USDC$0.999811

-0.05%

Cardano
ADA$1.057017

0.48%

Some Miners Face an Uncertain Future Despite Rising Bitcoin Price


14 May 2020

#Bitcoin

Despite a post-halving rise in bitcoin’s price Wednesday, the current value may not be enough to keep less-efficient miners operating, and that could shift market dynamics.

At press time, bitcoin (BTC) was trading up 2.3% over 24 hours at $9,106. The world’s first cryptocurrency is trading above its 10-day and 50-day moving averages, which is a bullish technical indicator, and has been on a steady uptrend since early trading May 13, 00:00 UTC.

The long-anticipated halving was, “a little uneventful,” said Jack Tan, founding partner at Taiwan-based crypto trading firm Kronos Research. But there has been one bright spot for traders: Bitcoin prices have been going up slowly but surely.

But market uncertainty lingers when it comes to cryptocurrency miners. The reward for miners to generate new bitcoin was cut because of the halving to 6.25 BTC, so the business of running machines to secure the network is much less profitable: “I think some of the miners might be in trouble. They just took a 50% pay cut overnight, with prices remaining where they are,” added Tan.

One mining metric that immediately changed after the halving was miner revenue from fees, which jumped from 4.6% right before the halving to 7% Wednesday, according to data provider Glassnode.

Miners bowing out of the business may change the dynamics of the crypto market, said Alexander Blum, of Two Prime, a crypto asset management firm. “The difference is that miners’ new net tokens are now not necessarily the primary driving force of sell pressure into the markets,” he said. “That mantle is likely to be taken on by exchanges that make trading fees and have to sell into the market to cover their business expenses.”

Steady exchange volumes are indicative of the market’s health and whether bitcoin can continue to appreciate post-halving, said David Lifchitz, chief investment officer at quantitative crypto trading firm ExoAlpha.

Bitcoin is trouncing the S&P 500 Wednesday, with the index of large-cap stocks down 1.75%. The cryptocurrency is also doing better than gold, which is up less than 1%. For the year to date, bitcoin is up 27%, gold is in the green 13% while the S&P 500 is down 12%.

Digital assets on CoinDesk’s big board are flashing green on Wednesday. The second-largest cryptocurrency by market capitalization, ether (ETH), gained 5.4% in 24 hours as of 20:00 UTC (4:00 p.m. ET). Other cryptocurrency winners include lisk (LSK) up 7.5%, monero (XMR) climbing 6.7% and iota (IOTA) up by 3%. All price changes were as of 20:00 UTC (4:00 p.m. ET) Wednesday.


Related

How the Fed sent Bitcoin down
How the Fed sent Bitcoin down
El Salvador may abandon Bitcoin
El Salvador may abandon Bitcoin
High Frequency Trading, Pipsing, Scalping
High Frequency Trading, Pipsing, Scalping
It Is Not Just Winter in the Crypto Market, It Is Polar Cold
It Is Not Just Winter in the Crypto Market, It Is Polar Cold
Two key Bitcoin trading indicators suggest BTC is ready for a 62% upside move
Two key Bitcoin trading indicators suggest BTC is ready for a 62% upside move
Bitcoin as crypto safe haven now
Bitcoin as crypto safe haven now
Bitcoin stays in tight range as analyst eyes potential interesting week in BTC
Bitcoin stays in tight range as analyst eyes potential interesting week in BTC
Cryptomarket changing landscape
Cryptomarket changing landscape
Cryptocurrencies rebounded as part of a general downward trend
Cryptocurrencies rebounded as part of a general downward trend

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 78.4% 46 $36 410.71 -3.15% -13.21% $689 659 775 515 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 69.6% 57 $2 430.21 -2.30% -22.34% $289 997 581 822 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.2% 1 $1.000622 0% 0.03% $78 240 790 130 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 66.4% 65 $369.92 -3.66% -21.88% $61 080 201 883 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 94.4% 1 $0.999811 -0.05% -0.08% $49 085 018 067 USDC 7 days price change
6 Cardano (ADA) ADA Cardano predictions 67.6% 63 $1.057017 0.48% -21.77% $35 466 180 547 ADA 7 days price change
7 XRP (XRP) XRP XRP predictions 76.4% 49 $0.606465 -2.74% -18.52% $28 950 772 806 XRP 7 days price change
8 Solana (SOL) SOL Solana predictions 68% 63 $89.77 -6.58% -34.53% $28 274 902 670 SOL 7 days price change
9 Terra (LUNA) LUNA Terra predictions 65.2% 68 $59.41 -6.29% -28.16% $23 858 145 307 LUNA 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 66% 64 $0.141252 -2.70% -14.09% $18 739 956 152 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 69.2% 69 $17.72 -5.62% -27.64% $17 502 509 817 DOT 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 68.4% 68 $64.05 -5.88% -24.48% $15 682 327 555 AVAX 7 days price change
13 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $1.000554 -0.01% 0.02% $14 549 407 961 BUSD 7 days price change
14 Polygon (MATIC) MATIC Polygon predictions 66.4% 72 $1.57 -2.05% -24.41% $11 682 467 913 MATIC 7 days price change
15 SHIBA INU (SHIB) SHIB SHIBA INU predictions 66.4% 70 $0.000021 -4.07% -25.75% $11 318 924 897 SHIB 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.