Bitcoin Mining Stocks take a massive hit 🔻

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Trending over the past 24 hours 👇️

📈 Markets

• Bitcoin is still trying to hold its range lows of $60,700.

• Till this level is held, the bullish market structure remains intact on the daily time frame, but the lower time frame analysis is indicating that a potential breakdown is possible in the coming few days.

• We now have 3 daily closes below the 50 Daily EMA which is a bearish sign. The 1 hour time frame is also forming a bearish head and shoulder pattern.

• Open interest is falling along with falling prices, which is a sign of bearishness.

• ETF outflows have been negative for the 3nd consecutive day, with $58 million of outflows seen yesterday.

• On the bright side, 4H RSI bullish divergence near the range lows is still in play, indicating short term reversal from the range bottom is possible for intraday longs.

• Sell side liquidity is sitting at ~$64,400, which is also in confluence with the horizontal resistance on the 1H chart, so that can be a good area for intraday profit booking.

• In case of a breakdown, $58,900 (100 Day EMA) & $53,100 are the next major areas of support if the $60,700 support is broken.

• Bitcoin Dominance has successfully re-tested & held it’s weekly breakout zone at 55.17%, indicating that BTC is set to outperform alts for the near future — at least till this newly formed support is broken. If dominance increases further while BTC breaks $60,100, there will be a bloodbath for altcoins.

• Overall, a rising BTC dominance, falling OI, falling prices & slowdown in ETF buying are showing some weakness within the market, and the bulls need to defend the $60,100 level to prove otherwise.

📅 Today

Bitcoin core 27.0 goes live ❗️ 

Bitcoin Core is an open-source software that runs the Bitcoin network and acts as a Bitcoin node and wallet. It downloads the entire Bitcoin blockchain and validates all transactions, providing high levels of security, privacy, and stability.

By running their own full Bitcoin Core nodes, users can ensure the security of their bitcoins and enforce Bitcoin’s rules without the need for centralized control.

Bitcoin Core 27.0 recently went live, and the key updates include :

1. Libbitcoinconsensus library is deprecated and will be removed in version 28.

2. Changes to the format of of its mempool.dat file that stores unconfirmed transactions to improve security.

3. Updates to the mempool policies & Remote Procedure Calls.

4. Revisions to the build system and wallet to lower transaction costs.

Fun Fact : Did you know that it costs only ~$200 to set up a full Bitcoin node ⁉️ 

Bitcoin Mining Stocks Take a Dive 🔻 

Post-halving profitability concerns and Bitcoin’s price fall over the last week have caused a massive slump for Bitcoin Mining Stocks.

The following are the performance of some of the top Mining stocks after their respective yearly ATH’s 👇️ 

1. Marathon Digital : -53%

2. Riot Blockchain : -54%

3. CleanSpark : -39%

4. Bitdeer Technologies : -41%

5. Iris Energy : -48%

According to Cointelegraph, publicly listed Bitcoin miners wouldn’t mine profitability post-halving if Bitcoin’s price remained around $40,000, its price at the time..

If Bitcoin’s price doesn’t continue to rise post-halving, it could force some U.S. Bitcoin miners to migrate or expand offshore in search of cheaper electricity costs, potentially sparking the fire for this dump.

📊 Stats

Educational 📔 

A simple case study to value Bitcoin Mining Stocks 👇️ 

Despite its significant decline of more than 50% since Feb 2024, Riot Blockchain still holds a valuation of ~$2.1 billion, equivalent to approximately 34,000 Bitcoin at current prices.

In February, Riot mined 418 Bitcoin. Considering the halving, their mining rate now stands at about 209 Bitcoin per month or 2,500 Bitcoin per year.

Assuming no new miners are acquired and operating costs are non-existent, Riot could potentially mine a total of 10,000 BTC until the 2028 halving, followed by 5,000 BTC till 2032, then 2,500 BTC till 2036, and so on ...

As a result, the maximum BTC that the company will ever successfully mine overtime (with our assumptions) is capped at ~20,000 BTC, but the company is already being valued at 34,000 BTC.

This projection underscores the overvaluation of mining stocks relative to their operational realities, especially when considering that these figures assume zero costs, which is an unrealistic scenario.

Note : This is not intended to be Financial Advise of any sort, but for educational and learning purposes only.

🤣 Meme of the day

Altcoin heavy investors after the recent dip 🤣 

That concludes our update for today!

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