BTC is likely to continue falling if it can not break through the $ 7,600 threshold, unfortunately we get stuck when the BTC moves to $ 7,700 (But within a few days) and soon the BTC has dropped to $ 6,090, breaking the threshold Critical support at $ 6,450
Firstly, the electronic money market can be easily manipulated by large trading floors. According to John Griffin, a professor of finance at the University of Texas, the USDT has been used to artificially inflate bitcoin prices. In his study, he analyzed blockchain transactions and found that most of the USDT purchases were timed to track market downturns and help stabilize the Bitcoin floor. That shows the artificial nature of market behavior. Although Vietincome hates conspiracy theories, it is clear that Bitcoin prices have recently been pushed down without any fundamental reason, defining all technical analysis and supply / demand relationships.
Second, according to BNEF analyst Sophie Lu, bitcoin miners can make a profit from exploiting electronic money as long as it is worth more than $ 6,925. She also wrote that while the price of 1 KW / h in China was about $ 0.13, many companies could take advantage of the excess in the electricity sector to negotiate a low price of $ 0.03. Considering this, the break even point can still be reached at $ 3,869. But not all countries have cheap electricity, so bitcoin mining is simply not profitable. Let's make a small test: to start exploiting Bitcoin, we need to buy some miners. You can start off with one of the world's most effective bitcoin miners - Dragonmint 1T ($ 16 / s) for $ 1,500. On average, it consumes 1.480 W and is relatively easy to operate. As you can see, you can earn 27 cents per day or about $ 100 per year.
=> With current prices squeezing small miners out of the market for two simple reasons:
They can not afford to work for a long time,
They can not reduce electricity costs.
At this point, the cost of digging Bitcoin exceeds the potential profit, which implies that the adjustment continues to go against the entire market.
And finally, OTC or Over-The-Counter transactions. For those unfamiliar with this term, here is a simple explanation: Imagine, you are a whale with $ 30 million. You want to buy some Bitcoin, but it would be quite difficult to fill such a large order on the Exchange Floor. Such purchases will fill the entire order list, pushing Bitcoin prices up, thereby increasing purchase costs. To avoid this, you can contact directly with OTC providers such as Cumberland or Circle Trade to give you a fixed, specific Bitcoin price. Finally, you can get Bitcoin and your market will not react on the deal, simply because no one knows about it. Quite often Vietincome heard that "big institutional investors will inject bitcoin" but they always forget that OTC traders can order millions of transactions without affecting the crypto market. Some people may think that the OTC deals are too small to play an important role but they are wrong: Circle Trade alone, trading over $ 2 billion in assets (Electronic Money) per month. While the OTC is legally and morally acceptable, it operates on the hope and expectation of the public that "large institutional investors will save the market from the fall."
@biblegateway you're on the @abusereports naughty list!
Bad Steemian! Bad!