Bitcoin seeing green, but is it a Happy New crypto Year?
On the week, Bitcoin is now up by 22%; monthly losses nonetheless remain close to 27%, according to Cointelegraph.
It is trading at the resistance line of $4000 up from around $3,200 earlier this week.
In a recent interview, Changpeng Zhao, CEO, and co-founder of major cryptocurrency exchange Binance, dubbed 2018 a “correction year” for cryptocurrencies. He expressed optimism for the future of the crypto industry, arguing that strong development and burgeoning “real use cases” will drive further adoption of cryptocurrency.
Bitcoin posted green for 5 consecutive days but others are not so optimistic.
The Cointelegraph said that in addition to Bitcoin, the second-largest crypto by market cap Ripple (XRP) is up a milder 0.5% on the day, trading at around $0.38, bringing its 7-day chart to a strong positive 29%. However, Ripple’s monthly chart remains a loss of just over 20%.
Ethereum, ranked third crypto by market cap, is trading at $111 and up close to 5% in 24 hours, having slipped to $82 last December 14. The crypto is now up 22% on its weekly chart, but down 28% on the month.
Crypto Mining is becoming a drain
CCN reports that despite Bitcoin trading near or just above $4,000, many miners are still finding it difficult to remain profitable or break even.
“Cryptocurrency miners in China are dumping their mining rigs or re-purposing them for non-blockchain uses like video rendering and cloud computing,” said CCN in November.
“Several cryptocurrency mining operations across Europe and Asia are shutting down because of the bear market, including Bladetech, a startup behind what was to be the largest crypto mining facility in the UK,” CCN also reported.
It is believed that bitcoin mining begins to be profitable at $6,000.
Dire end of year prediction
Forbes reports that Bitcoin and cryptocurrency markets are about to end a difficult year that has wiped some 80% from the value of bitcoin and even more from some of its biggest rival cryptocurrencies.
JPMorgan Chase, a U.S. bank, has warned that the sliding bitcoin market has spooked long-awaited institutional investors.
“Participation by financial institutions in bitcoin trading appears to be fading,” JPMorgan analysts wrote in a research note to clients, first reported by Bloomberg.
“Key flow metrics [in futures markets and in average volumes] have downshifted dramatically.”
“Prices have declined to a point where mining is becoming uneconomical for some miners, who have responded by turning their mining rigs off,” the analysts added.
Commenting on the JPMorgan research note, Bloomberg Intelligence’s Mike McGlone predicted the most recent Bitcoin price upswing, which has sent the bitcoin price up some 10% in the last 24 hours.
“Sharp rallies should be expected as the market is extremely over-sold by most metrics,” McGlone said. “Record shorts and extreme discounts to most moving averages.”