After a long cipher winter, Bitcoin According to miners, the average BTC investor is back in the black. report From blockchain intelligence company Glassnode today
Bitcoin rose over the weekend, trading above $20,000 for the first time since Sam Bankman-Fried’s FTX crash. This means that mining companies are once again profitable by running the expensive hardware required to mine the Bitcoin network.It also gives your average bitcoin Hodlereven if they sold their stash now, they would no longer sell for a loss.
Glassnode estimates that the average price that investors paid for BTC today, Bitcoin’s “realized price,” is around $19,700. According to Glassnode, the average price at which Bitcoin traded over the past 155 days is $18,000. In either case, Bitcoin is currently trading well above that mark, and today he is trading above $21,000.
The rise means miners are also getting some relief, the analytics firm said. bitcoin mining It is the use of computational power to solve the complex mathematical equations required to create new Bitcoins. According to Glassnode, it currently costs about $18,800 to mine Bitcoin. Bitcoin is now trading above $20,000, meaning the average mining company can actually operate profitably again.
Bitcoin’s price surged last week on news that U.S. inflation had begun to fall. The Federal Reserve has raised benchmark interest rates throughout 2022, quelled record-high inflation in the U.S., and cut risk assets across the board, including both stocks and bitcoin.
The Fed last hiked rates by 50 basis points in December—It’s a more modest increase compared to several 75 basis point price increases over the course of the year. The Bureau of Labor Statistics showed in its consumer price index report on Thursday that December inflation fell to 6.5% from 7.1% in November. This appears to have helped gain investor confidence that the Fed may be moving towards easing hawkish monetary policy.
Rate hikes throughout 2022 contributed to a brutal bear market in cryptocurrencies. And as the price of Bitcoin plummeted, many over-leveraged companies went bankrupt, including Celsius, Voyager, and Three Arrows Capital.
The biggest collapse to date occurred in November, when the once-dominant FTX collapsed following a bank run on the exchange. The liquidity crisis forced the company to admit that customer funds on its platform were not fully backed, freeze withdrawals and eventually file for bankruptcy.
Now, with FTX founder Bankman-Fried indicted on eight financial crimes awaiting trial and the Fed keeping its foot off gas, crypto investors may have reason to feel optimistic again. not.
The views and opinions expressed by the authors are for informational purposes only and do not constitute financial, investment or other advice.