Bitcoin Miners Add Capacity Despite Dwindling Profits

Bitcoin’s modest recovery ran into resistance Tuesday, as cryptocurrency trading volumes plummeted near their lowest levels in over two months. Meanwhile, major news hit the airwaves after Facebook announced it will reverse a comprehensive ban on cryptocurrency advertising.

BTC/USD Price Levels

The price of Bitcoin touched a low of $6,124.28 on Tuesday for a loss of more than 2%. The slow grind lower took place over a 12-hour period as prices reversed from their session high above $6,290.

At press time, BTC/USD was trading at $6,160 for a total market capitalization of $105.4 billion.

On Sunday, Bitcoin touched its lowest level of the year so far before a relief rally pulled prices back toward the $6,200-$6,300 range. The gains were accompanied by a sharp rise in trading volumes, a sign that bargain hunters were looking to capitalize on oversold conditions. However, that rally ran into resistance Monday with prices plateauing just above $6,300. The largest cryptocurrency by market capitalization faces strong resistance around $6,500. On the opposite side of the ledger, the coin is holding above a key psychological support of $6,000.

Trading volumes for Bitcoin and the broader crypto market have since come crashing back down, according to CoinMarketCap. Daily turnover on Tuesday amounted to a little more than $10 billion, the lowest since June 17. Bitcoin accounted for more than 31% of the daily transactions.

Facebook Reverses Ban on Crypto Ads

The market’s poor performance has largely discounted the steady stream of positive developments coming out of banks, hedge funds and social media, which all seem to show an improving environment for the crypto industry.

On Tuesday, it was reported that Facebook is planning to reverse its ban on cryptocurrency advertisements by allowing “licensed” parties to market their services on the social media platform.

According to Bloomberg, Facebook’s application for approval to promote cryptocurrency services will evaluate certain aspects of the applicant’s business to ensure consumers are protected from scams. This includes “any licenses they have obtained, whether they are traded on a public stock exchange, and other relevant public background on their business.”

“Given these restrictions, not everyone who wants to advertise will be able to do so,” Facebook said. “But we’ll listen to feedback, look at how well this policy works and continue to study this technology so that, if necessary, we can revise it over time.”

The social media giant in January adopted a zero-tolerance policy toward cryptocurrency and ICO advertising over concerns of consumer protection. Later, Google and Twitter announced similar bans targeting cryptocurrency businesses.

The news is a welcome sign for backers of virtual currency, who are navigating an increasingly complex and sometimes hostile terrain for the blockchain industry. However, as Hacked reported previously, the vast majority of traffic generated on cryptocurrency sites are generated organically and not through paid advertising.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

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