How is The Price of Bitcoin Going to Change?
For many people involved in the cryptocurrency ecosystem, the 10th of November 2022 is a significant date. The most valuable cryptocurrency, Bitcoin, hit a new all-time high of $68,789 a year ago. This was an increase from its previous all-time high. We tell you how far the coin has...
For many people involved in the cryptocurrency ecosystem, the 10th of November 2022 is a significant date. The most valuable cryptocurrency, Bitcoin, hit a new all-time high of $68,789 a year ago. This was an increase from its previous all-time high. We tell you how far the coin has fallen from its all-time high and what we anticipate it will do in the future. As this article is being written, the price of Bitcoin has dropped to $16,688, which is 75.67% lower than its all-time high.
What Happens with Bitcoin Price?
Experts from BeInCrypto believe that Bitcoin may continue to decline in the search for a cyclical bottom, and they do not rule out the possibility of it falling to $10,000 or perhaps breaking that level.
There are a number of arguments in support of lowering the price of Bitcoin to $10,000, including those that are based on an analysis of the behavior of cryptocurrencies during earlier crypto winters. The records of how the price of Bitcoin has changed show that the currency can find a cyclical bottom about 85% below its all-time high. In the event that the past is prologue, there is a possibility that Bitcoin will reach $10,000.
The analysts at JPMorgan Chase & Co. believe that the price of Bitcoin still has the opportunity to drop. They claim that investors can envision Bitcoin reaching a price of $13,000. Analysts from Bloomberg think that the price of bitcoin will continue to fall in the near future. Peter Brandt, a well-known trader in the cryptocurrency industry who has been successful in the past at accurately predicting the price decline of BTC in 2018, has joined the viewpoint of his peers.
“It should be brought to everyone’s attention that the recent slide of Bitcoin makes this bear market only the sixth worst in the history of [cryptocurrency].” According to what he posted on his microblog, “If BTC lowers by 80%, we will see Bitcoin at $13,800, and if it drops by 85%, we will see Bitcoin at $10,350.”
Cryptominers are actively Selling BTC
Most of the time, miners do something called “hodling,” which keeps the market stable. Even so, a number of on-chain measures suggest that cryptominers have started actively selling their coins to follow the market trend.
Based on the information being collected, miners have started doing things they have never done before. The current level of sales is approaching the all-time high that was reached almost five years ago. The pressure that crypto miners are putting on the market suggests that there is a good chance of a long bear market.
Due to the uncertain state of the economy as a whole, miners have to work in a time when prices are rising quickly. This makes the situation much worse. It’s likely that the recent trend of selling is because cryptocurrency miners are trying to cover their operating costs, such as the cost of power and the depreciation of their computers.
In general, the recent crypto winter has been extremely difficult for the mining industry. Because of the clear financial difficulties that many prominent corporations were experiencing, the only option left for them was to put their assets up for sale on the market. Many people in the business world think that Bitcoin mining could be in danger if the recent trend of falling Bitcoin prices continues.
For example, Frank Holmes, the head of the investment firm US Global Investors, says that if the price of Bitcoin stays at or below $12,000 for a long time, mining for the most popular cryptocurrency could be stopped around the world.
The Traders Believe that Bitcoin Will not Rise in the Near Future
Miners of Bitcoin (BTC) are progressively shifting away from traditional methods of Bitcoin storage as the bearish trend becomes more pronounced and the cost of electricity continues to grow. Miners, who were known to hoard Bitcoin and serve as a kind of market buffer, are suddenly selling their mined currencies at an alarmingly rapid rate. This is a significant shift from earlier in the year.
The Bitcoin Miner Sell Pressure indicator specifically indicates that there has been significant selling activity by miners at the present price of Bitcoin, which is denoted by the color red on the chart. The current level of sales was practically the level that it was five years ago, according to the data that was presented by Charles Edward, the founder of the Capriole investment firm, on November 11.
The fact that Bitcoin miners are putting pressure on the market to sell shows that a market correction is becoming increasingly likely. Miners also work in a world where inflation is going up and the global economy is getting worse. Because of this, their active selling can be ascribed to the fact that they are meeting their operational expenditures, which includes the increased cost of electricity.
In all of the prior years, some miners have been stockpiling the asset in preparation for an anticipated increase in price, while others have taken out loans in order to pay their operational costs. It seems to reason that when they lose more money due to a fall in revenue and an increase in expenses, they will likely sell more assets.
The crypto winter has, in general, dealt a severe blow to the mining business. As a result, a number of listed companies have filed for bankruptcy and have been forced to liquidate their BTC holdings. In certain situations, the mining equipment loses its profitability, and the miners are obliged to sell it at a price that is lower than its market value.
In addition, industry analysts believe that the future of Bitcoin mining will be in peril if the price of Bitcoin continues its downward trend. Frank Holmes, the chief executive officer of the investment firm U.S. Global Investors, has warned that if the price of Bitcoin exceeds $12,000, mining operations may be halted globally.