Per a report from the Cambridge Center for Alternative Finance (CCAF), fossil fuels have been the primary energy source for BTC mining since the start of the year. The CCAF recently updated its Cambridge Bitcoin Electricity Consumption Index (CBECI). Its study claims that 62% of all the energy the leading token has consumed so far consists of coal-based energy. BTC’s Energy-Intensive Mining Bitcoin employs the proof-of-work consensus mechanism to create new tokens and validate transactions on the blockchain. The PoW…
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $196 billion.
- Bitcoin ends the week where it started it at around $6,800 after surging mid-week to $7,400
- Ethereum value surged by a total of 23% in the past seven days.
- XRP rises to $0.19 and bravely battles to overcome the $0.20 barrier
- COVID-19 has now spread to 210 countries worldwide and killed over 110,000 people
Crypto Trends 06th – 12th of April 2020: PERFORMANCE & ANALYSIS
The last week should have been the fourth week of a consistent surge from Bitcoin. Its trajectory seemed to follow the same pattern as it did during the second half of March. It started from around $6,800 on Monday to reach $7,420 on Tuesday, before trading peacefully between $7,100 and $7,400 throughout the week.
To the unpleasant surprise of investors and owners everywhere, the BTC price dropped by around $600 on Friday and struggled to regain momentum during the weekend. It now ends the week at the disappointing value of $6,870 between the support level at $6,600 and the next resistance barrier at $7,000.
The sudden drop resulted from a decrease in the number of miners on the one hand and the increasing sentiment of fear that struck most of the financial markets on Friday. It is difficult for investors to react with panic to the recurring bad news surfacing about the COVID-19 spread.
On Friday, April 10th, the U.S. recorded more than 2,000 deaths in a single day from the newly Coronavirus. In combination with the ongoing announcements from governments worldwide about printing new money, this terrible news has destabilized markets everywhere.
The ensuing altcoins replicated the drop that Bitcoin experienced on Friday. Ethereum had risen by more than 23% compared to last week, and it was close to breaking the $175 resistance level. Unfortunately, it mirrored BTC’s plunge and dropped precious points on Friday. It is now trading at $159.
Ripple’s XRP still struggles to go over the $0.20 barrier and stay there for more than a day. It is now trading at $0.191, but it spent the entire week on a rollercoaster ride as it oscillated between $0.179 and $0.203 to the disappointment of its investors.
What’s in the News?
- Canada-based 3iQ Corp has launched a Bitcoin Fund on the Toronto Stock Exchange (TSX)
- Fold, a Bitcoin-friendly shopping application, has become the first crypto startup to join Visa Fast Track Program.
- Crypto pessimists fear the worse from the aftermath of COVID19 – Bitcoin Price Is Likely to Plunge to $1K, according to Silk Road founder Ross Ulbricht.
- Binance will soon release a cryptocurrency debit card, dubbed the Binance Card.
- The COVID-19 pandemic is closing in on 1.8 million cases worldwide, out of which more than 410,000 have been recovered and over 110,000 declared dead.
Next Week’s Market Forecast
In the upcoming week, Bitcoin will regain its surge and break beyond the resistance level at $7,400 like it did this week. Beyond that threshold, BTC will be looking to dissipate the industry’s pessimistic voices and make a point by overcoming the $7,700 resistance level.
The $2 trillion promised by the Trump Administration as a stimulant for the economy might backfire into hyperinflation. It may be bad news for the U.S. currency, which will become plentiful. However, it could also mean good news for cryptocurrency, and Bitcoin especially. The upcoming halving should also improve the popular crypto’s image as a scarce but precious financial alternative to fiat money.