- When the bitcoin halving took place yesterday, many experts and analysts in the industry expected the price of the leading assets to skyrocket.
- However, as of yet, nothing significant has happened to the price of BTC.
When the bitcoin halving took place yesterday, many experts and analysts in the industry expected the price of the leading assets to skyrocket. However, as of yet, nothing significant has happened to the price of BTC.
As the leading crypto coin trade sideways following the highly anticipated event, one hedge fund manager, Matthew D’Souza has said that the sideways trading could lead to a humongous crash in the market.
Expect Extreme Capitulation if #Bitcoin trades sideways— Matt D'Souza, CPA (@mjdsouza2) May 11, 2020
BTC is at $8,550 Post Halving:
1. s9 at $0.03 now make $0 (13.5TH & 1.4kw)
2. Mid Gen (Inno/Canaan) at $0.0393 now make $0 (30TH & 2.4kw)
3. Next Gen (s17 NOT+) at $0.07 now make $0 (50TH & 2.2kw)
This is 30%+ of the Network
When the market is in a state as it is now (no action, sideways trading), bitcoin is at risk of miner capitulation. When you mine bitcoin, it has the potential to become uncomfortable at any time without a halving event. In theory, this would trigger self from different miners which in turn would see a drop in the value of the price of bitcoin.
But what is miner capitulation? Even though it sounds bad, it isn’t as serious as you may think. The leading cryptocurrency has a built-in mechanism that automatically changes the difficulty of mining its assets which helps avoid capitulation.
Mine is on the bitcoin network on the hold a tiny percentage of the overall trading volume as well. And with the current pandemic taking the world by storm, the operational costs on the network are significantly lower than they would be with electricity being lower too. China is a hub for this as it essentially holds more than half of the whole mining operations of bitcoin.