U.Today Franchise
F2Pool
0
📊‍ Infographics
1649 views

Bitcoin Price Rally Caused Huge Increase in Mining Difficulty

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
Bitcoin Price Rally Caused Huge Increase in Mining Difficulty
Cover image via u.today
Contents

Recent DataLight research shows that the Bitcoin price directly reflects the coin’s mining default. In May 2019, both of these metrics reached their highest levels in nine months as the mining industry is rising from the ashes.        

👉MUST READ

Bitcoin Mining Is Becoming More Decentralized

Bitcoin Mining Is Becoming More Decentralized

A silver lining

After the mining industry felt the wrath of the bear market, many miners had to choice but to shut down their machines and leave the market. Subsequently, when Bitcoin reached its bottom in December, its mining difficulty started to drop substantially.

In fact, BTC recorded its second largest drop in mining difficulty on Dec. 3. At lower difficulty, miners can generate greater profits.

👉MUST READ

Space Mining and Blockchain Games: Futuristic Interview with Asteroid Rush Creators Team

Space Mining and Blockchain Games: Futuristic Interview with Asteroid Rush Creators Team

It’s profitable again

The interest in cryptocurrency market rekindled after the Bitcoin price started surging on Apr. 2. As of Apr. 18, the Bitcoin mining operation breakeven for efficient mining was standing at $3,550 while the price was above the $5,200 level. Hence, mining operations in China that can take advantage of low electricity costs can generate up to $2,000 in net profits.

👉MUST READ

Bitmain Co-Founder Jihan Wu Is Heading to Moscow After New York Consensus Event

Bitmain Co-Founder Jihan Wu Is Heading to Moscow After New York Consensus Event

China’s mining ban

 As reported by U.Today, China is mulling over imposing a ban on its mining sector while representing approximately 2/3 of the global industry. That will inevitably tank of the network’s hash rate, thus making mining more profitable for an average Joe.

Join our Telegram channel to get news even faster!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

Recommended articles
CLOUD MININGPromoted
0
📰 News
160 views

Bitcoin’s Domination May Rise According to One Analyst

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Vladislav Sopov
    📰 News

    Famous analyst PlanB published an interesting chart showing the four stages of Bitcoin’s market dominance. It appears that he predicts hard times for the altcoins!

Bitcoin’s Domination May Rise According to One Analyst
Cover image via u.today
Contents

With the last days of 2019 right around the corner, analysts and traders are getting the audience pumped for 2020 forecasts. The third Bitcoin (BTC) halving and Ethereum's probable migration towards its Proof-of-Stake (PoS) consensus will be hot topics for the crypto community. Prominent trader PlanB decided to surf this wave by showing BTC's dominating traction.

Four Stages for Dominance

In the historical chart, PlanB has revealed one of the most important indicators of the crypto world - Bitcoin's market capitalization. This indicator shows the ratio of BTC's market capitalization to the capitalization of all other cryptocurrencies tracked publicly by the available services (4000+ coins). This is used as a sign of comparative demand for altcoins and BTC.

Bitcoin Dominance Historical Chart
Image by: https://twitter.com/100trillionUSD/status/1203012308513017856

Plan B showed the four stages of BTC's dominance, in which the graph is slipped vertically (bottom line indicates 100% BTC market dominance). The first stage, which lasted before April 2017, showed that BTC's dominance was more than 90%. The second stage (April-September 2017) showed that the figures were between 70% and 90%.

👉MUST READ

Bitcoin Dominance Reaches 55 Percent, Sets Its New High This Year

Bitcoin Dominance Reaches 55 Percent, Sets Its New High This Year

The third and the fourth stages repeated twice from September 2017 to the present day. In the early days of 2018, the indicator was at an all-times-low of 35%. Now, the graph is about to re-enter BTC's second stage with a 70+% dominance.

Altcoin Annihilation?

PlanB surrounded his picture with the ironic hashtag #altcoinannililation. Therefore, PlanB interpreted this traction as bad sign for the altcoins. It should also be said that some of commentators in PlanB's open thread suggest that the four-stage cycle was launched by the previous BTC halving of July 9, 2016.

Furthermore, we can see that BTC's high price correlates with its low market dominance. With that said, the publication by PlanB forecasts an extremely bearish start for 2020.

Recently, BTC advocate Tuur Demeester claimed that the price of BTC will drop one more time to $5,000. This level will be reached due to the capitulation of "weak" investors prior to the long bull rally.

card

Are you still waiting for BTC to move? Will you hold onto it in 2020? Share your trading secrets on Twitter!

Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Recommended articles
CLOUD MININGPromoted