Bitcoin has been up in the past weeks. Many are looking at the recent weeks as a sign that Bitcoin has finally reached bottom and is now on its way back to recovery. In fact, there are even those speculators thinking if Bitcoin will be able to surpass its all-time high this year.
Today, Bitcoin was able to record a 5.5 month high at $5,864. And it appears that Bitcoin is set to test the $6K resistance soon. In the last 24 hours, Bitcoin was able to jump by 7.48 percent. And this is a positive sign since there was the Bitfinex controversy that they are using Tether’s dollar fund to cover up for its losses.
Renewed Interest in Mining
During the bearish market, miners were one of the most affected sectors in the crypto industry. There was a point when mining was actually more expensive than actual Bitcoin. And many miners were forced to either mine other cryptocurrencies or simply turn off their machine. Others were selling them at a lower price.
But recently, there is a renewed interest in mining. In China, there is a noticeable increase in the cost of second-hand crypto mining equipment. And the reason behind this recent jump is the bullish Bitcoin price.
According to Michael Zhong, who is a mining analyst at TokenInsight, “When the payback period is apparently below 200 days, it has made more miners feel there’s an opportunity”. He also added that “That further incentivizes their buying demand for secondhand models and leads to a price jump and will bring the payback period back above 200 days again”.
Now, this can have an impact on different business people especially those independent miners. Darius Sharif Samani who is an independent miner in China started buying secondhand Antminer S9 units for $140. However, he said that the cost of the same model is at $250. And also, if you want a more sophisticated version, you will have to pay $280 or even go as high as $320.
What Could Happen Next?
What can actually happen next? There is a chance that Bitcoin is on its way to $6,000. Also, it is possible that other altcoins are going to be pulled up. Ethereum jumped by 4.5% in the last 24 hours while XRP, EOS, and Bitcoin Cash as well. Bitcoin was able to dominate 55% of the entire crypto market.
According to Josh Rager who is a prominent cryptoanalyst, “BTC looks stronger & closed above resistance while other altcoin majors hit resistance and pulled back”. He also added that “I would love to long/buy on a BTC pullback at $4,339-4,769 zone Bitcoin has room to push up over $6,383 on 1M Chart so no promises on a pullback at this moment”.
It leads to the question if adoption is really on its way? Facebook has also been reported that it is already seeking $1 billion in investment in order to have the Facebook Coin. Facebook dabbling on cryptocurrencies is a huge step. It is looking to partner with Visa and Mastercard to bring this project into reality. Also, are we going to see more regulatory changes in the coming months?