One of the challenges of Bitcoin (BTC) mining is to fix the heating problem caused by intense computing power. As a result, miners can stop their activities during the warmer months. More than 60% depreciation since the November peak is putting selling pressure on miners.
Bad news for Bitcoin (BTC) came one after another
Bitcoin hash rate dropped 27% to 159.41 EH/s due to the shutdown of miners in Texas. The figure was the lowest since February this year. Miners stopped their activities to save power due to the record heat wave. As JPMorgan noted in a report released in June, Bitcoin mining costs fell from $24,000 to $13,000. JPMorgan says this could increase miners’ Bitcoin sales and hinder BTC growth. Also, according to Interactive Brokers CEO Thomas Peterffy, there is a high probability that Bitcoin will be banned.
As we quoted as Kriptokoin.com, in the research bulletin of the European Central Bank (ECB) published in July, cryptocurrencies using mining were described as “climate change risk”. Despite all this negative sentiment, Chinese Bitcoin investments are still hopeful, according to a new survey. Investors plan to buy the dip despite the ongoing correction and a nationwide crypto ban
Investors are waiting for $10,000 in Bitcoin
The tweet above is by Wu Blockchain, a Chinese blockchain researcher. Accordingly, a survey of 2,200 people on the China-based social media platform Weibo showed that 8% would buy Bitcoin when its price reaches $18,000. 26% of respondents prefer to wait for BTC to reach $15,000. However, the majority expects the price to drop further, saying they will buy 40% BTC at $10,000.
BTC is now rapidly reaching these levels, trading +5.69% in the last 24 hours at $20,865.61.
Chinese investors are more cautious about Bitcoin than the US
On the other hand, the U.S. government may ban cryptocurrencies over concerns about financing illegal activities, tax evasion, and the Treasury Department’s inability to monitor transactions involving cryptocurrencies. Past crashes caused by restrictive decisions cause panic among investors.
In another survey conducted by Bloomberg MLIV Pulse in early July, 60% of the net 950 respondents on Wall Street said they were expecting $10,000 in Bitcoin. The two surveys in particular show a striking similarity in the bearish trend of crypto speculators in the US and China. However, on-chain activity shows that investors in the US have been more bullish on Bitcoin since June 2022 compared to their Asian counterparts.
Notably, the 30-day change in regional BTC price has been positive only in the US sessions. According to data from Glassnode, the metric was negative only during Asian trading hours.
Technical indicators show BTC price below $13,000
At the same time, weakening techniques are starting to favor more downside, especially in the three-day time frame.
Bitcoin (BTC) is forming a “bear flag” pattern that will cause it to break $13,000 by September.
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