The selloff that started early last month has forced several miners to close their operations; the market reports indicate bitcoin mining breakeven stands around$ 5500 to $6000 level – which is significantly higher from current bitcoin price of $4000.
Bitcoin price plummeted from $6500 at the beginning of last month to $3500 on November 25. The largest coin continues to make small sideways moves around $4000 over the previous week.
Altcoins have been feeling more pressure, amid declining trader’s confidence in cryptocurrency markets. This is evident from a steady rise in bitcoin dominance over the past couple of weeks. Bitcoin dominance in the crypto market is standing slightly below 54%, the highest level in the last two months.
Bitcoin Miner Argo Blockchain is Optimistic About the Future
Although reports are showing that miners are struggling to survive, Argo Blockchain, a UK-listed company claims the demand for their products and services remains strong despite the considerable selloff in prices over the past eleven months.
“Our mining packages are being snapped up as quickly as we make these available and demand continues to exceed supply,” said Argo co-founder and director Mike Edwards in a trading update to the market. “Despite a recent downturn in the cryptocurrency market, we are continuing to experience a strong ramp-up in revenues due to good execution of our growth strategy.”
Investors cheered strong remarks of Argo co-founder. Its share price soared more than 20% following the statement.
However, the comments of Argo director regarding the short-term volatility are contrary to what other big bitcoin miners are experiencing.
The world’s second-biggest maker of cryptocurrency mining rigs company, Canaan Creative, last week announced to sell all of its Avalon-brand equipment on sale at $200 per unit— which is substantially down from the previous price of $700.
Is there Any Hope for Improving Business Environment for Bitcoin Miners?
It is true that bitcoin miners all over the world are experiencing considerable pressure due to the massive decline in bitcoin price. Their business model is wholly correlated to bitcoin price. Thus, the business environment would become more complicated for miners if bitcoin price extends the bearish trend into the next year.
Top 10 CryptoCurrency Price Analysis Today
Bitcoin price plummeted almost 40% last month, and the flagship cryptocurrency is down close to 77% since it had hit an all-time high of $20000 at the beginning of this year.
Bitcoin miners expect bitcoin price to trade above the physiological $6000 level for their survival. Bitcoin investors and market participants are aggressively looking towards institutional investments to create upward momentum in prices. The latest agreement between G20 countries regarding cryptocurrency market regulations would also help in adding investor’s confidence.
NYSE chairman Jeff Sprecher believes that the cryptocurrency market will survive its latest price selloff. Answering to question about the survival of cryptocurrency markets, he said “The unequivocal answer is [digital assets will survive]. As an exchange operator, it’s not our objective to opine on prices.”