Just recently I was called out in terms of where the price of BTC is heading and I mentioned that I'm pretty much bullish on the price. As staying in this zone the 50k ish is totally none profitable for miners as based on the chart above ( https://en.macromicro.me/charts/29435/bitcoin-production-total-cost ) it cost a whooping 69.8k to mine a bitcoin however with the price of 57.5k ( at this current point ) miners would literally be bleeding out of their pockets.
I was then questioned again saying "hey" some miners gets it cheaper and its all about the competition and out to kill the markets making other miners to turn off their machines so that the hashrate goes down. This is true .. however a lot of these miners would have had invested millions into their setup and I do not think they would give up that easily. its happened many times in the past and somehow the price would normally supersede the cost else why bother mining at all.
The other thing is Funding Rates on the exchanges for the past 7 days ( of this posting ) is that its all heavy on the positive side. So meaning .. if you are holding in position LONG at the value of $100,000 in contracts worth that is worth $173 of funding which those who are in SHORT position needs to pay.
WTF ??? 100k to earn $173 in 7 days ????
Wait wait ... remember i said $100k with leverage 100x .. SO your cost to open that trade would only be $1,000 and you earn $173 past 7 days. Now thats a whooping 17.3% . I'm sure your brains would be churning out more zeros by now.
So how is this affecting the price action ? Well .. simple !! Those who are in SHORTS will not want to keep paying for no reason. They would most likely close their positions and flip it to LONG therefore price would resume in the uptrend as more pressure are on SHORTS to close.
By saying all of that ...
I'm pretty much bullish on BTC price action and would not be surprise if we resume the BULL run as intended all the way thru to 2025. There are a few hindrance which could turn the entire crypto markets into another crash .. however I do believe crypto has not come to a level of price stability yet. So more volatility is yet to come.
Cheers guys and have a brilliant day
Posted Using InLeo Alpha
Congratulations @bitrocker2020! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 340000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts: