Bitcoin: Trying To Break Through The Glass Ceiling
FxPro Financial Services Ltd | Jun 08, 2020 08:26AM ET
Bitcoin kept relatively calm on the weekend, showing a rather narrow price range of $9,500-$9,750 during the last day. At the same time, it is possible to note a rather significant growth of trading volumes by 37% to $26 bln. During the week, the benchmark cryptocurrency shows a 3% growth. The charts clearly show that the upward trend is gaining strength. However, for the time being, the price bumps into the glass ceiling at 10K, as the miners sell their assets.
Among the TOP-10 coins, Cardano (ADA) is the leader in terms of growth, adding 12% over the week, Bitcoin Cash (BCH) rose by 7%. Ethereum (ETH) failed to close the week above $250, adding just over 3%, just like Bitcoin. However, the very fact that there was no sale is good news for the Ethereum (ETH), which has been growing steadily for the last three months.
Analytical company Arcane Research showed that after halving the miners sell 5% more coins than produced to cover the cost of the production process. Balancing the market of miners can be compared with the oil market, where participants have been working at a loss for some time to maintain market share. However, unlike the oil market, mining is still free, which will eventually take weak players away from the market. This means that the path for bitcoin growth will be open only after the stop of miner’s coin sale and the balancing of computing power.
After activating of halving, BitInfoCharts recorded a drop in commission for transactions in the bitcoin network by almost 80%. The network mempool is also much lighter now. Despite the shock waves after the halving, it still has a favourable impact on the network, which is a confirmation of Nakamoto’s correct financial and mathematical decision.
Selling bitcoins by miners looks like a temporary price pressure factor. In this regard, it is possible that the glass ceiling can be passed through with more and more purchases from investors and traders following the recovery of demand for risk in global markets.
Get The News You Want
The FxPro Analyst Team
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.