Site icon CoinDCX-Blog

Top Crypto News: Bitcoin Production Cost Drops to $13k! Will the BTC Price Follow the Downtrend?

Top Crypto News: Bitcoin Production Cost at $13k Amidst the $20K Value Mark

Being the first crypto asset that introduced decentralization to the world, Bitcoin has made its mark. Both in the crypto and the traditional finance space, Bitcoin is well known for its pioneering qualities that have led to the development of the entire crypto space. Now, after almost more than a decade of its existence, Bitcoin has become too expensive of a token for many investors. Since the rise in its value, investors has been looking for various other altcoins to invest in, hoping to figure out the next Bitcoin and generate some passive income/profit from it. However, the current crypto crash has led to a bear trend within the crypto space. This has not only led to a downward trend in Bitcoin’s value, but has also seen the crash of Terra LUNA coin. All reasons coupled together have sent shockwaves within the crypto space, which has led to the investors selling off their crypto assets. With the downward trend, this crypto crash has also highlighted some of the shortcomings of the crypto space to the world.

Read more Crypto Crash Reasons

Fall in Bitcoin’s Production Cost

According to the Analytics Insight report, “A group of strategists in JPMorgan, led by Nikolaos Panigirtzoglou stated that the drop in Bitcoin’s production cost was caused due to the recent decline in electricity use as interpreted by the Cambridge Bitcoin Electricity Consumption Index. Bitcoin’s hash rate has also been fluctuating for the past few weeks but has not demonstrated any clear signs of a downtrend. If Bitcoin experiences a positive uptrend in its prices, there would be less selling pressure on miners to sell their BTC tokens, and also less sell-off pressure on investors who are trying to avoid further financial risks. But the drop in its production costs will quite negatively affect the overall Bitcoin price, and in turn, will not encourage investors to further trade BTC tokens.Source: Analytics Insight

However, true believers in Bitcoin are still holding onto the asset. According to the Coinbase monthly report, The Elusive Bottom, BTC holders, those who have been holding onto the asset for six months and more have not given into the market volatility as they own a highly concentrated percentage of the total 21 million Bitcoin, i.e., around 77% of BTCs. 

Additional Read: Top Crypto Prices Today 18th July, 2022

What is Bitcoin?

If the above information was a little too much, here is a small description of the infamous Bitcoin. Bitcoin is the first of its kind crypto asset which was introduced to the world by an anonymous investor, Satoshi Nakamoto. It was during 2009 when the said investor of Bitcoin introduced the whitepaper with the mission to decentralize the finance space and set up peer to peer transactions without any involvement from any third party. 

Additional Read: BTC vs ETH

Why do Long Time Holders Believe in Bitcoin?

Bitcoin and the crypto space are not new to a crypto market crash or bear runs. Both the scenarios are inevitable in any asset class as their markets are volatile. However, the crypto asset class is more susceptible to volatility as this is yet a new form of asset class for the investors. This is why whenever the economy of the world is getting corrected, the investors rush to liquidate the assets as an act of them following the market sentiments. 

How to Survive a Bear Market?

According to experts, there are ways to survive the bear market, irrespective of the crypto token in your portfolio. Here are the top 5 ways:

Additional Read: 5 Ways to Survive a Bear Market

Exit mobile version