Bitcoin (BTC) is fast turning out to be a bad dream for BTC lovers who have endured an excruciating month where they have seen their favorite coin lose its values and tank below $ 20,000. After tanking to $19,000 Bitcoin is new bottom levels and the new Bitcoin mining data is also revealing the same.
The latest price level is setting new benchmarks and is different in various forms. At present the price of Bitcoin is $19,019 which is much below $19,700 level from 2020. The 200-weekly moving average has also been breached at the present price levels.
Bitcoin Values Below Mining Cost Level
As per latest Data the current value of BTC is almost at par with the mining expenditure. Hence it will be impossible for small fries to continue mining in present situations. It also exposes the real value of Bitcoin in the present scenario. According to well known Bitcoin expert Doctor Profit, a Bitcoin trader, called the situation unsustainable for average miners.
“Bitcoin trades below production cost level now, not sustainable for the average miners. They pay more than they earn.”
Traces Of Bitcoin Bottom
The light at the other end of the tunnel can be traced to the past history of the bitcoin when it sank below the production price. There were instances first in January and then in November 2017. The most recent instances of the crash happened when the COVID-19 pandemic was raging across the nation.
Glassnode data reveals that the revenue which is generated by mining is continuing in its downward trend. As the mining costs grow and the overall macro scenario in bad state, miners is less incentivized now.
Incidentally there is clear indication that Bitcoin is reached its nadir and is scratching the bottom. It is not clear when this Bitcoin price turnaround will happen but historical data reveals a lot. If the Bitcoin prices fall lesser number of miners would continue mining and if the price rises more Bitcoin miners would enter the fray.