Bitcoin Price Steady at $6,500-6,700 Now, Waits for $2T Stimulus
Bitcoin price is heading towards $6,800 levels, as the U.S. stock market awaits $2 trillion help from the government. The American economy is at the free fall, but the quick and efficient measures like the stimulus package and medical care are saving lives and stock markets.
According to Bloomberg Markets, the Dow index got 114 points back heading to an upwards trend, while Bitcoin settles itself at $6,700. Since 1933, the market showed the biggest daily surge, per the numerous market researchers. Bitcoin price already made a jump today to $6,832, then went back to $6,500-6,750 range now.
The market receives support at $6,500 level currently, per the TradingView and CT’s Horus Hughes Stats. The altcoins are in the hot zone too, performing with at least 3% profits in Litecoin, 3% profits in Ethereum, and 7.7% in Monero gains.
Coinspeaker.com’s main page is now showing the Bitcoin dominance level at 66%, while the market cap equals $185,9 billion. Worth noting that companies like Tesla Inc (NASDAQ: TSLA) and Netflix Inc (NASDAQ: NFLX) were gaining all the way. People sit at home, love Tesla… everything seems logical. Social networks like Facebook Inc (NASDAQ: FB) experienced stock price increase too. Facebook is gaining 8,7% during the trades on 24 March. During the month, Facebook stocks were so pressed by the coronavirus that they kept falling.
Strong Stocks, Bitcoin Price Recovery Force Miners Comeback
The Network’s Difficulty level has decreased after the hash rate decrease by more than 40% during March 13. This day will enter the history of cryptocurrencies and the classic markets as one of the worst days for bulls. The markets are recovering, as the miners are coming back.
Interestingly, the Bitcoin’s network difficulty adjustment happens once in two weeks. Hence, now as the difficultly decreased, miners could mine more with the same rigs for a while. Per the data, they are slowly turning their rigs on. Rekt Capital reports on Twitter on the recent stats.
Bitcoin hashrate is on the increase
Other miners simply turned off their machines and waited for Bitcoin‘s price to increase so that mining was worth their while again$BTC #Crypto #Bitcoin https://t.co/TAN70Pge9W pic.twitter.com/KACAMYGDSx
— Rekt Capital (@rektcapital) March 24, 2020
BTC Price Under Miner’s Profitability Average, Yet They Mine
Sure thing, if you have several mining farms in a country with cheap electricity, the incoming Bitcoin halving is a big promise to you. It is pretty clear from the dry market data of previous halvings, that we are going to see the gradual price increase over time. Bitcoin, of course, won’t have the ability to jump to $50,000 per Bitcoin the next day after the Halving. There is a hefty of technical conditions not met for such a price pump to happen now.
The analysts have a spot on at least two episodes of altruistic mining in the recent hash rate vs. price history. Miners are working even despite they won’t have a profit if they sell the mined coins at the current price. However, let’s not forget the fact that the Bitcoin price increase usually made the old school miners very rich over time.
For instance, in case of miner finds a block in 2016, he receives $500 per BTC, then sells it. He will get much less than selling the same bitcoin at the beginning of 2017 ($1,700 per BTC in January 2017), or even at the end of 2017 (at ~$13,700 per bitcoin). The profit logic is very clear here, but only in case, the miner is ready to hold the mined coins. Per the inflow of miners, we make a presumption that the crypto industry gains and re-gains important actors, which is a good sign for the further price uptrend. But don’t expect any miracles and don’t use this piece as investment advice. Only trust yourself, and keep healthy.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.