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    Bitcoin (BTC): 26 January Price Digest 

    Bitcoin Price Digest: 26 January

    Bitcoin is bouncing back in the middle of this week after a strong fall on Monday.

    Last Monday, the largest digital currency collapsed to its lowest level since last July.

    The coin on some trading floors tested values ​​below $33,000, but on Tuesday it was able to rebound. Compared to the peak values ​​recorded in November, the value of BTC has fallen by almost 50%.

    On Wednesday, at the time of writing, Bitcoin rose above the $37.5K resistance zone and the 100-hour moving average. A breakout pattern has formed on the hourly BTC chart, setting the stage for an early break of the $38k resistance and testing the $40k barrier (if BTC continues its recovery momentum).

    ETH has also begun to climb up the chart and hit the $2,500 mark. Altcoins are not far behind, and more of them are “green” again. MATIC and AVAX are at the forefront – over the past day, both of these altcoins have recorded double-digit growth in percentage terms.

    On-chain data shows that the collapse has greatly impacted miners’ income and transaction fees on the BTC network. Thus, the daily income of BTC miners decreased by 18%, and the transaction fees of miners fell to the lowest level in 6 months. And all this despite the rapid growth in the volume of transactions in the BTC network. But even in light of all these problems, the bitcoin mining sector consistently remains one of the most profitable industries in the world.

    Bitooda estimates that the cost of maintaining any BTC mining operation is around $40 per MWh.One MWh of BTC mining is estimated at $230 (this value is also underestimated since halving is not taken into account), which means that this activity brings a stable income of $190 per MWh.

    Bitcoin MWh

    It is noteworthy that yesterday, the analytical company ARK Investment Management released a report containing a forecast that the BTC rate will reach $1 million by 2030. According to ARK Investment, the volume of Bitcoin transactions increased by 463% last year. The annual volume of payments in BTC even exceeded the amount of payments processed by Visa.

    According to the authors of the report, if at least several states legalize Bitcoin as a payment instrument, its price will begin to grow at an aggressive pace. The authors are sure that this is inevitable – in the coming years, the Bitcoin network will become part of the global payment infrastructure. The first cryptocurrency to be used on a par with the leading fiat currencies.

    The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research. This text is not a guide to action. The author's opinion may not coincide with the opinion of CoinJoy.

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