There is a possibility of a temporary fall of bitcoin

Some analysts say that despite the recent uptrend in bitcoin, the price is likely to fall, at least for a short time. According to experts, this fall could occur even before the fall in prices in the global stock market. In addition, with the rise in prices during this period, the sale of bitcoin miners has intensified.

To Report Coin Desk ‌ The price of Bitcoin has fluctuated almost unchanged in the last 24 hours and has grown by about 12% in the last 7 days.

The returns of digital currencies during this period have varied from currency to currency. For example, in the last 24 hours, the price of some Altcoins, according to Waves, THORChain and Aave, has risen by about 20%. Dodge Quinn and Shiba Inu, well-known market memes, have lost almost 2% of their value during this period.

Prices in the global stock market rose after Russian and Ukrainian officials both announced that the peace process between the two countries had progressed well. The rise in the price of risky assets was accompanied, as always, by the devaluation of the dollar and gold. On the other hand, the Chicago Mercantile Exchange Index (CBOE) has reached its lowest level in a month. This index is one of the most popular tools for assessing traders’ expectations of price fluctuations in stock options markets.

Reducing volatility in various markets is a sign of reducing traders’ fears and anxieties, and could be in favor of a recent rise in the price of high-risk assets, such as digital currencies. However, some analysts say there are still signs of price correction in the short term, and these signs are even more pronounced in the digital currency market.

“Bitcoin is keeping pace with the growth of global stock market indices, and most of the feelings of financial market investors are first and foremost reflected in the price of bitcoin,” said Alex Kuptsikevich, an analyst at FxPro. This means that the temporary fall in the price of bitcoin can occur before prices fall in the stock market.

Sales of bitcoin miners have intensified

The index you see below is called “MPI” and measures the sales of bitcoin miners compared to their average sales over the past year. The index rose yesterday, indicating that bitcoin miners are now selling more mined units than usual.

While miner sales have clearly increased, the volume of units transferred from their accounts to digital currency exchanges remains stable. This means that miners have recently traded some of the extracted units outside of the exchange market and within the network with large buyers.

The growth of this index usually occurs at a time when the price of bitcoin has reached its peak and miners have an incentive to earn money from the sale of their capital.

The latest bitcoin price jump was accompanied by a record-breaking network hash rate. Hashit is the total processing power that miners allocate to the bitcoin network to process user transactions.

Rising bitcoin prices directly affect miners’ income. For example, the Canadian company Bitfarms, which is active in the field of bitcoin mining, earned about $ 60 million in the last quarter of 2021. The company’s period earnings from bitcoin mining increased by 33% compared to $ 45 million in the third quarter of 2021 and by 426% compared to the fourth quarter of 2020.

While the company’s revenue during this period has been very significant, the bitcoin price correction in recent months could have a negative impact on the revenue of its subsequent periods.

The growth of the bitcoin hash rate has slowed slightly in recent weeks, while the price of bitcoin has just crossed the $ 46,000 resistance. Atrium network hash has also increased in 2022 and, like Bitcoin, has slowed down in recent weeks.