Market Status: Maybe now is the best time to buy a bitcoin miner

Along with the drop in Bitcoin price and miners’ income, the difficulty of the network is increasing. This issue can show that a number of miners are taking advantage of the opportunity and the low price of equipment to buy more mining devices.

To Report CoinDesk, the Bitcoin price candle, has been steadily rising for the past three days, and with this growth, the losses at the beginning of the previous week have been partially compensated.

In the last 24 hours, however, Bitcoin has lost about one percent of its value and is now trading at a price of about $20,600. Some analysts remain cautious about bitcoin’s occasional spikes in this turbulent market, where traders’ risk appetite has been severely reduced. Meanwhile, inflation in America reached the highest level in the last 40 years last Wednesday, and the Celsius lending platform finally declared bankruptcy after a period of silence.

Craig Erlam, senior analyst at Oanda Group, said that Bitcoin’s resilience in recent days against negative events does not necessarily mean that market conditions are improving.

This analyst says:

The short-term outlook for digital currencies remains worrisome given the risk-filled environment of most of the world’s financial markets and the announcement of multiple bankruptcies in the industry. Contrary to what most people think, the latter (multiple bankruptcies) could be more worrisome if Bitcoin falls to lower price levels.

The dollar index (DXY), which measures the value of the US dollar against a basket of major world fiat currencies, is approaching new highs not seen since 2002.

This growth in the value of the dollar is due to the increase in demand for fixed-income securities that are dependent on the US dollar, and in addition to this, the US central bank has continuously increased the bank interest rate in recent months and the value of other foreign currencies such as the euro has decreased. has been found It should be noted that not long ago, the price of the euro in the world markets fell below one dollar after almost two decades.

The dollar index has a negative correlation with the price of Bitcoin; Therefore, the growth of this index can be accompanied by a decrease in the price of digital currencies.

A sharp drop in the price of mining devices at the same time as the bankruptcy of Celsius

Simultaneously with the announcement of the bankruptcy of Celsius, Celsius Mining, which was one of the subsidiaries of this institution and operated in the field of digital currency mining, officially announced its bankruptcy. With this, the price of Bitcoin mining rigs has reached its lowest level in almost two years.

The Celsius subsidiary filed a confidential request to go public with the US Securities and Exchange Commission in March and apparently spent $500 million last year to expand its mining activities in North America.

Celsius Mining is now selling its equipment that it no longer needs, below the price and with a huge discount. A person familiar with the matter, who did not want to be named, also said that Celsius Mining started auctioning thousands of its newly purchased rigs in June, and in the first stage, 6,000 rigs were mined at a price of 28 dollars per tarah per second. And in the second stage, he sold 5,000 devices at a price of $22 per terabyte per second.

According to the price data of the Luxor Mining platform, in June and at the same time as the Celsius auction, Bitcoin mining rigs were bought and sold at a price of 50 to 60 dollars per trace per second. This means that Celsius has sold its devices for almost half the market price.

Last month’s report by Glassnod showed that the total income of Bitcoin miners has decreased by 57% since the record-breaking price in November, while the difficulty of mining Bitcoin has increased by 132% since then.

Golsnod wrote in his report:

This significant growth in the difficulty of the network shows that the remaining miners have increased the scope of their activities during this period, and despite the sharp decrease in mining income, new miners have been added to the network. Therefore, the costs incurred to purchase hardware and provide mining equipment can continue to cause financial pressure on Bitcoin miners.