Cryptos Today: Bitcoin Regains Key Level With Investors Eyeing Potential Mass Settlement by Miners

After diving to close to US$ 29,000 yesterday, Bitcoin (BTC) breathes this Friday morning (3) and resumes the level of US$ 30,000, considered an important level for the cryptocurrency to maintain chances of a stronger recovery. in the short term. At 7:20 am, the digital currency was trading at $30,185, up 0.7% over the last 24 hours.

Meanwhile, most altcoins remain on hold, with Ethereum (ETH) and other top 10 cryptos by market cap operating down 1.6%. The exceptions appear in smaller projects, such as the Internet Computer (ICP), which advanced 8.1%, and BitDAO, which dropped 18.7% compared to the same time yesterday, interrupting an important sequence of gains.

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Despite having avoided a sharper drop, Bitcoin is still making investors wary given the challenging global scenario. Market sentiment remains pessimistic, with the Bitcoin Fear and Greed Index returning to touch level 10, indicating “extreme fear”.

“Bitcoin will get its momentum back once sentiment on Wall Street improves, but that will likely take several weeks,” says Oanda Senior Market Analyst Edward Moya.

For the Oanda expert, investors’ “risk appetite” will depend on “expectations” around what the US central bank “will do after the summer”.

“Bitcoin is forming a foothold, but most traders are still healing from their wounds,” he wrote. “For a new wave of technical buys to be triggered, Bitcoin needs to recapture the $33,500 level,” he points out.

The bad moment directly affects the operations of cryptocurrency exchanges in the world. It wasn’t just Bitso and Mercado Bitcoin: American companies Coinbase and Gemini have also laid off employees in recent days.

Coinbase’s LJ Brock said in a statement that the company will “prolong the hiring break for new and coverage roles for the foreseeable future and will cancel several filled vacancies.” According to him, the cuts come “in response to current market conditions and ongoing efforts to prioritize business”.

Billionaire twins Cameron and Tyler Winklevoss, founders of Gemini, said in a note that the crypto industry is currently in a “phase of contraction that is settling into a period of inactivity”, otherwise known as “crypto winter”.

Investors are also paying attention to the movements of Bitcoin miners, who hold many coins and have started to get rid of reserves to cover operating costs.

Riot Blockchain, one of the largest publicly traded Bitcoin miners, announced that it has already disposed of half of the 466 bitcoins mined in May. The implied price of each unit produced is approximately US$ 30 thousand, very close to the current level.

The crisis installed in mining companies is already impacting the network’s computational strength, with a sudden drop in the hashrate (a measure of Bitcoin’s computational power) yesterday to a level almost 35% lower than the historical peak.

“This is mainly due to the difficulty that miners are having to obtain profitability in their operations and are shutting down their equipment”, explains Bernardo Schucman, senior vice president of the digital currency division of the American mining company CleanSpark.

“This demonstrates that miners misplanned their financial models and failed to remain profitable in the future. bear market. For experienced miners who anticipated the bear market and sought more aggressive metrics, the timing is good since the mining difficulty will continue to decline or remain stable in the short term”, he explains.

Although the shutdown of equipment results in less security of the network, Schucman recalls that the computational strength of the Bitcoin blockchain still guarantees very high security to the protocol.

  • Watch on Crypto+: What happens when a crypto dies? And projection for Bitcoin

Check out the performance of the main cryptocurrencies at 7:20 am:

cryptocurrency Price Change in the last 24 hours
Bitcoin (BTC) US$ 30,185.94 +0.7%
Ethereum (ETH) US$ 1,790.76 -1.6%
Binance Coin (BNB) US$ 302.24 -0.4%
Cardano (ADA) US$ 0.570822 -0.9%
XRP (XRP) US$0UUS$0.398599 +0.3%

Cryptocurrencies with the biggest gains in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Internet Computer (ICP) $8.40 +8.1%
Bitcoin SV (BSV) US$ 54.84 +5.2%
Waves (WAVES) $10.19 +4.9%
Iota (MIOTA) US$ 0.356769 +4.8%
Stellar (XLM) US$ 0.145235 +3.6%

Cryptocurrencies with the biggest drops in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
BitDAO (BIT) US$ 0.540033 -18.7%
Kava (KAVA) $2.50 -6.5%
Maker (MKR) US$ 1,144.41 -6%
Chain (XCN) US$ 0.169220 -5.3%
Kusama (KSM) US$ 69.41 -4.3%

Check out how cryptocurrency ETFs closed in the last trading session:

ETF Price Variation
Hashdex NCI (HASH11) BRL 24.75 -0.6%
Hashdex BTCN (BITH11) BRL 34.29 -1.21%
Hashdex Ethereum (ETHE11) BRL 25.56 -0.54%
Hashdex DeFi (DEFI11) BRL 20.75 -8.02%
Hashdex Smart Contract Platform FI (WEB311) BRL 23.30 +2.23%
QR Bitcoin (QBTC11) BRL 9.12 -0.43%
QR Ether (QETH11) BRL 6.27 -1.72%
QR DeFi (QDFI11) BRL 3.94 -2.23%

See the main news from the crypto market this Friday (3):

Japan passes unprecedented stablecoin law

Japan’s parliament on Friday passed a legal framework for stablecoins, providing a safety net for investors following the collapse of TerraUSD (UST) last month.

Japan is one of the first major economies to pass a specific law for stablecoins, even if the legislation goes into effect in a year, Bloomberg noted.

The bill provides clarity on the definition of stablecoins, which will now be considered digital money and must be linked to the yen or other legal currency, guaranteeing holders the right to redeem them at face value.

New York wants to suspend operation of Bitcoin miners

The New York State Senate passed a bill that aims to address some of the environmental concerns seen around proof-of-work mining, the same used by Bitcoin.

The bill, passed by the state Assembly last month, seeks to impose a two-year suspension on any new fossil-fuel mining projects.

Existing mining companies or those currently undergoing the license renewal process, however, will be allowed to continue operations.

Investor flight causes liquidity crisis in Lido’s Ethereum token

The Staked Ether (stETH) token, a Lido protocol token that was supposed to trade at a price close to that of Ethereum (ETH), has been trading at a price 2% to 3% below that of ETH since the collapse of the Terra network. (MOON).

The discount is a result of an “illiquidity frenzy” that the UST implosion unleashed in an already challenging macro environment, as Earth enthusiasts realized they were overexposed and began panic selling other currencies, Fundstrat analyst Walter Teng told CoinDesk.

“At this point, there is no new money coming into cryptocurrencies,” Teng said.

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