The ailing Bitcoin Prize in the first quarter suffocates the Bitcoin mining share
The ailing Bitcoin Prize in the first quarter suffocates the Bitcoin mining share
- Bitcoin has fallen by 13 % in the last 24 hours and has thus extended a downward trend that has lost almost 30 % of its value in the past seven days
- The massive sale was felt by Bitcoin mining companies, the stocks of which recorded a decrease in
The Terra ecosystem collapsing was the biggest headline in the crypto sector, but it is not the only crypto company that is affected by the market extinguishing. His native token Luna collapsed in the last 24 hours after a total of 98 %. The related stable coin Terrausd has suffered a similar fate - up to $ 0.4711 compared to the dollar.
Bitcoin is doing badly, but is much better than Ethereum and many other old coins. The flagship today fell below $ 28,000 - a low that it has not reached since December 2020. Remarkably, the recent declining wave was much more intense than earlier downward trends that were printed this year.
The shares of Bitcoin mining companies have also suffered one blow
The latest market data show that the stock prices of several listed Bitcoin mining companies, including Riot Blockchain, have broken down.
The majority of Bitcoin mining shares developed worse than the asset itself, and at a fair distance, said Jaran Mellerud by Arcane Research on Wednesday. In a number of tweets, the analyst also pointed out that the five largest mining stocks (measured by the market capital) have recorded losses of more than 50 % since the turn of the year.
"The biggest loser is Riot, which has fallen 65 % since the beginning of the year. This is followed by marathon with a loss of 63 %." he wrote. " If we include the ten largest public Bitcoin mining companies, CLEPARK is the best performer with a decrease of 41 %."
Part of the factors that lead to the losses is their direct exposure to market volatility - price declines in the assets affect their income. These crypto mining companies have made considerable direct investments by holding the asset that is currently bleeding.
"Rising global hashates and a falling BTC price have meant that less BTC was broken down for these companies and a lower value of their mined BTC."
In stark contrast to the historical trend, this year's BTC price decline did not lead to a reduction in the global hash rate. After all, the Arcane researcher named the relatively slower growth of the hashrate by companies as a further factor. He observed that the investors of these companies expected faster growth of the Hashrates, which was not the case.
Source: Coinlist.me
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