Home Bitcoin News Bitcoin holds steady; recent decline could hinder crypto miners

Bitcoin holds steady; recent decline could hinder crypto miners

4 min read

Major cryptocurrencies are in the green Wednesday, adding to Tuesday’s gains, which saw most altcoins — coins other than bitcoin — finish higher by as much as 8%.

Bitcoin, the worlds biggest digital currency, remains above the $7,000 psychological level in early New York trading with a single bitcoin last changing hands at $7,524.49, up 0.3% since its 5 p.m. Tuesday levels on the Kraken crypto exchange.

After dipping toward $300 billion on Monday, the total value of all cryptocurrencies has bounced, and was most recently at $332 billion, according to CoinMarketCap.


Cryptocurrency market cap

Read: Hospital launches rehab clinic to treat cryptocurrency addiction

Are miners being squeezed?

As the overall price trend remains down, one crucial part of the bitcoin industry is changing, and it could have greater ramifications if prices continue to track lower.

“Historically, miners have been true believers and supporters of bitcoin and other cryptocurrencies — choosing to take profits in manageable chunks or holding off on selling coins to support prices,” wrote Thejas Nalval and Kevin Lu of Element Asset Management. “However, the world of mining has changed from one made up of evangelists to one where large-scale facilities reign, making fluctuations in price more deadly.”

Element added that while the actual break-even price to mine a bitcoin isn’t clear, prices may be getting to levels where miners would have to sell holdings to sustain operations.

According to a May report from Elite Fixtures, the cost to mine a single bitcoin in the U.S. is $4,758, $8,723 in Japan and $26,170 in South Korea.

Read: Here’s how much it costs to mine a single bitcoin in your country

Altcoins and futures showing modest gains early Wednesday

After Tuesday’s rally, it’s been a quiet open for the altcoin market. Ether

ETHUSD, -2.78%

is up 0.5% to $570.76, Bitcoin Cash

BCHUSD, -2.18%

has added 1.7% to $1,017.20, Litecoin

LTCUSD, -2.59%

is up 1.1% at $121.50 and Ripple’s XRP coin

XRPUSD, -2.13%

is up 1%, last changing hands at 61 cents.

Much like the spot market, bitcoin futures are off to a slow but steady start. The Cboe June contract

XBTM8, -1.70%

is up 0.2% at $7,515, while the CME June contract

BTCM8, -1.80%

is up 0.5% at $7,535.

Read: Bitcoin is definitely a bubble, says Wikipedia founder

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