Home Bitcoin Mining Mining efficiency will launch bitcoin to $36,000, analyst says

Mining efficiency will launch bitcoin to $36,000, analyst says

118
0
SHARE


Bitcoin on Friday broke below a short-term support line at $9,000, extending selloff in the previous session that took all major currencies into the red for the week.

A single bitcoin












BTCUSD, -5.58%










last traded at $8,721.17, down 4.1% since Thursday’s levels at 5 p.m. Eastern time on the Kraken exchange.

The price of the No. 1 digital currency had spent the best part of the week consolidating after nearing the $10,000 mark late last week. However, that phase now appears to be breaking, giving some analysts cause for concern.

“It’s worth noting that while this could be a significant breakout to the downside, we have pierced the $9,000 level a few times throughout this time but each time price has rebounded back above,” wrote Craig Erlam, senior market analyst at Oanda in a research note.

“A significant close below here today could signal another period of downside for bitcoin, which has seen a number of false dawns since the collapse in its price around the turn of the year.”

Mining economics have bitcoin on track for record high

In a Thursday research note, Fundstrat Global Advisors, one of the markets biggest crypto bulls, said the bitcoin mining price dynamics have the No. 1 digital currency on track to reach $36,000 by the end of 2019.

Mining efficiency is an important facet of the cryptocurrency market, and Fundstrat said that higher hash power—the processing speed required by computers to generate a bitcoin—will propel bitcoin to a new all-time high.

Fundstrat


“We believe the current path of hash power growth supports a BTC price of about $36,000 by 2019 year end, with a $20,000-$64,000 range,” wrote Sam Doctor, head of data science research at Fundstrat.

The company notes that the price to break-even cost metric (P/BE) provides an important support level for those mining digital currencies.

On Monday, Fundstrat said bitcoin could rally as much as 70% during the coming Consensus 2018 conference in New York City.

Read: Here’s how much it costs to mine a single bitcoin in your country

Altcoins crushed

Most altcoins are showing significant losses to begin Friday. Ether












ETHUSD, -6.47%










has lost 6.8%, trading at $686.09, Bitcoin Cash












BCHUSD, -8.88%










has shed 11.4% to $1,372.50, Litecoin












LTCUSD, -7.64%










is down 6.7% at $141.22 and Ripple’s XRP












XRPUSD, -10.11%










is the worst performer, down 12.2% at 68 cents.

Bitcoin futures have tracked spot lower with both major contracts showing heavy losses to begin Friday. The Cboe Global Markets Inc.’s May contract












XBTK8, -5.83%










 is down 4% at $8,730 and the CME Group Inc. May contract












BTCK8, -5.72%










is off 4.5%, last trading at $8,685.

CryptoWatch: Check bitcoin and other cryptocurrency prices, performance and market capitalization—all on one dashboard



Source link