is down 16% from its all-time high of $ 69,000, currently trading below $ 58,000.

Today, the market has fallen even further, with the price of Bitcoin falling to $ 56,750 while Ether has fallen to nearly $ 3,970, and the total crypto market cap has fallen to $ 2.60 trillion. dollars.

Along with the observed decline in the crypto market, this has resulted in liquidations and subsequent resetting of funding rates.

“With funding rates now falling to neutral levels, there appears to be a healthy balance between long and short demand in the market,” Arcane Research said in a research note.

Some say some people could take profit off the table with a “good fight” between long-term buyers and leveraged speculators.

Meanwhile, the fall in the price of coins like the SHIB also suggests “weeding out some of the speculation” driven by retail traders, Bloomberg Intelligence analyst Mike McGlone said.

SHIB -10.77%

SHIBA INU / USD

$ 0.00 $ 0.00 -10.77%

Volume 2.94 b Variation $ 0.00 Open $ 0.00 Circulation 10 t Market capitalization 23.72 b

18 min Ether drops to under $ 4,000 and bitcoin to nearly $ 56,500, but mining remains extremely profitable Major Hollywood studios to launch NFTs and explore issuing their own crypto

“Some cleaning of the parts itself could put pressure on the pillars as a necessary part of the evolving and strengthening ecosystem. “

“We say the sooner the better for the coins of the speculation machine to undergo a certain purge, in order to move on to the process of adopting crypto assets into investment portfolios.”

However, the bull market is not yet over as MVRV, which measures the ratio of BTC’s market cap to realized cap, is still far from previous highs, indicating that BTC has even more room to maneuver.

Meanwhile, the dollar has rallied since the June FOMC meeting, hitting a 16-month high on Tuesday amid rising expectations of a tightening of monetary policy on the horizon.

“A stronger greenback would have you believe that the same favorable winds that propelled global asset prices – including BTC and crypto – over the past 18 months are starting to reverse, and that assumption wouldn’t quite be. wrong, ”noted Delphi Digital.

But for Bitcoin mining to be unprofitable, the main crypto asset must drop significantly – up to 88.5% more.

Indeed, for the largest crypto mining company in North America, Marathon Digital Holdings, the breakeven rate on Bitcoin after factoring in energy and hosting costs, is $ 6,500, according to its CEO. Fred Thiel.

“It’s obviously a very profitable business,” Thiel said on Bloomberg’s “QuickTake Stock”. “We can tap into this market for quite a long time. Bitcoin would obviously have to drop 80% before it becomes a tough place for us, so we’re pretty comfortable with where our costs are right now.

According to data compiled by crypto derivatives provider FRNT Financial Inc, Marathon has one of the lowest mining costs per coin.

As we reported, the Bitcoin miner Hut 8 was mining Bitcoin at a cost of less than $ 3,000 per BTC in the third quarter, when it first shipped cutting edge GPUs, 10,000 NVIDIA chips (NASDAQ: ), “Offering margins of around 95%. “

In the third quarter, Marathon increased its hash rate to 2.7 exahashs per second and generated 1,252 BTC, a 91% jump from the previous quarter. The company expects 130,000 previously purchased machines to be put into service by mid-2022.

It currently plans to raise $ 650 million by selling convertible bonds and using the proceeds to modernize its mining equipment and even finance acquisitions.

“Having cash on the balance sheet allows us to take advantage of opportunities to buy more miners, or we could potentially acquire mining companies, we could invest in technologies that could significantly reduce or improve the energy efficiency of our mining operations,” Thiel said. “We want to be agile, we want to have optionality. “

Bitcoin BTC

$ 58,039.52

+ 0.64%

-3.41%

-10.89%

See the details

Ethereum ETH

$ 4,076.66

+1.09%

-3.30%

-14.40%

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