Blockchain Development and Risk

Barons reported on the 29th that the cryptocurrency market, including Bitcoin, could face a backlash from mining companies’ sales.

This is because mining companies, which have been pressured to raise operating funds due to falling virtual currency prices such as Bitcoin, have already sold some of their holdings or may continue to participate.

According to Barons, an investment media outlet, mining companies, which are important for maintaining blockchain functions such as Bitcoin, may be the biggest enemy of price support

This is what he claimed.

Bitcoin prices have been trading at $20,600 as of the day, cutting in half since early May.

Shares of some mining companies were worse. Shares of Marathane Digital Holdings (NAS:MARA) have plummeted 63 percent since April 4.

Riot Blockchain (NAS:RIOT) also fell 58 percent, while Core Scientific (NAS:CORZ) plunged about 70 percent.

Barons pointed out that in the good times, virtual currency mining companies and bitcoin prices formed a virtuous cycle, but such a structure can no longer be expected.


By fonuder

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