Bitcoin extends rally beyond $8,200 despite miners selling

July 25, 2018
Chris Wheal

Bitcoin led another rally in cryptocurreny markets on Wednesday, with the world’s biggest digital coin by market capitalisation extending its two-month high beyond $8,200.

Bitcoin bulls are pushing crypto market higher

The positive newsflow of recent sessions has helped, with a number of institutional investors expressing burgeoning interest in crypto markets – including Goldman Sachs and BlackRock.

Mainly positive moves – 11 of the last 12 sessions have delivered gains – suggest buyers have outpaced sellers in the last couple of weeks.

Bitcoin miners sell

The activity of bitcoin miners has been interesting in the past two sessions, however. According to data from Cryptocomposite – a soon-to-be-launched provider of crypto analysis – miners sold $17.3m of coins in the last 24 hours, outpacing their earnings of $14.4m.

All this means, of course, is that many were waiting for crypto prices to rise so they could sell coins they were holding at a profit.

It has been suspected by some analysts – Morgan Stanley in particular – that the breakeven point for bitcoin miners – the price at which they begin to make profit – is around the $8,000 mark.

Twitter response

Bloomberg’s article on Tuesday: Keep an eye on what Bitcoin miners are doing during this rally, prompted much response on Twitter.

Zoinky@coinjunky said: “Looks to me like they’re ramping up operations,” referring to a chart on hash rates.

 

Trades_@Trade_ questioned the validity of claims that mining was unprofitable with bitcoin prices below $8,000.

“I have a decent sized GPU set up. Pay 11c per kwh, even at 6k BTC levels it was profitable. Bloomberg has no idea what they are talking about.”

Resistance at $8,500

Technical analysis saw the next resistance level for bitcoin at around $8,500, which it neared but failed to break through on both Tuesday and Wednesday.

“It will be interesting to see if the revived positivity over bitcoin injects bulls with enough inspiration to challenge the $10,000 psychological level this quarter,” said Lukman Otunuga, research analyst at FXTM.

Price round-up

Here’s a breakdown of the price moves of the top 10 cryptocurrencies at around 11am on Wednesday [London time]:

  • Bitcoin was up 3.3% at $8,270
  • Ethereum gained 1.3% to $475
  • Ripple was unchanged at $0.45
  • Bitcoin cash edged 0.2% higher to $843.98
  • Eos jumped 6.8% to $8.59
  • Stellar lumens added 3.6% to $0.30
  • Litecoin fell 1.1% to $86.32
  • Cardano nudged up 0.1% to $0.17
  • Iota climbed 2.8% to $0.99
  • Tether was unchanged at $1
Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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