BTC prices surpassed the psychological $7,000 level and altcoins followed suit with a price recovery.
Bitcoin (BTC) broke above the $7,000 range for the first time since August 7, after touching a low of below $6,000 two weeks ago. Still, the BTC remains depressed, sinking from levels above $8,000 at the end of July.
The most recent BTC recovery has been associated with a series of interventions by the Tether treasury wallet, in which USDT tokens were sent to Bitfinex, boosting trading and prices. However, a recent report by blockchain research firm Chainalysis claims that USDT is no longer able to have a major impact on the wider crypto market.
Hence, the market sentiment shows a warming up, after what turned out to be a longer than expected bear market. A price recovery failed to materialize in July, as some traders hoped.
The current BTC price is still seen as fundamentally weak, not breaking the sliding trend of the past months. The high share of USDT trading suggests that outside investments into BTC have slowed down.
BTC broke the $7,000 barrier around 11:00 UTC on Tuesday, spiking within minutes, and managed to hold onto the gains. BTC traded at around $7,060 as of 08:23 UTC on Wednesday. This price was achieved as more than 50% of BTC volumes were against the USDT digital asset, according to data by CryptoCompare.
The price of BTC is key for several components of the ecosystem. Most notably, it depends on whether miners get a chance to break even. The range at which mining is profitable depends on the equipment and electricity costs, with some farms profitable at prices as low as $4,400 per BTC, while others needing prices above $6,000.
For cloud mining customers that might got some hope after recent bullish price movement, next estimated difficulty adjustment is a whopping 10,8%, which will bring the break even price to $10.4k in 8 days. pic.twitter.com/LX3q4ACrUK
— Madoff wasn't on the blockchain (@bccponzi) August 28, 2018
Comments point out that for cloud mining contracts, the price might be much higher. Cloud mining, which was attractive during the bull market and paid out well enough, has been disabled for some users due to costs being higher than potential profits.
BTC transactions are also slowing down, sinking away from a record near 500,000 transactions in 24 hours. In the past week, the Bitcoin network saw around 200,000 transactions in 24 hours on average, based on data from Blocktivity. One of the big concerns surrounding Bitcoin is the low real-world usage, and the fact that transactions are mostly used for speculation.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.