While bitcoin is consolidating below the level of $ 40,000 per coin.
We suggest speculating on how much bitcoin can and should cost. The price of any asset is determined by supply and demand, taking into account the cost. That is, figuratively speaking, bitcoin cannot cost less than the cost price, since in this case, no one will simply mine it. However, this statement is true only for the medium and long term. What does it mean? If the price of bitcoin drops below the cost price for two weeks or two months, this will not change the overall picture of the situation in any way. Miners will not give up mining, because they will know that the price will rise again. Thus, in the short term, bitcoin may very well cost less than the cost of its production. According to various estimates (in different mining locations, the cost of electricity, premises, equipment, and so on is different) the cost of one bitcoin coin ranges between 20-30 thousand dollars at the moment. The profitability of its production is 20-30% (but again, these are “average figures for the chamber”).
Moreover, Bitcoin Stands Still at $38K
It was just a few days ago when the primary cryptocurrency dropped two consecutive times to $35,500 after failing to overcome $36,000. However, the bulls stepped up at this point and pushed the asset north.
BTC reclaimed the aforementioned level and, after a brief retracement, went on the offensive again. This time, the increase was more gradual than sudden, and bitcoin tapped $38,000, as reported yesterday.
In the following hours, the asset kept climbing. As a result, it went to a daily high at nearly $39,000. However, it failed to break above that level and, as of now, has declined by several hundred dollars.
On the other hand, Ripple price is testing investors’ nerves as the price is testing and breaking the monthly S1 for a second week in a row. As long as price action can make a weekly close above, recovery is possible, as a weekly close below would set the scene for a further downfall, holding initially 17% losses. Expect the current market volatility price to fall below and set the scene for $0.50 next week.
What di you think about it?