Companies who had been betting on bitcoin’s value in addition to their regular business were the talk of the town as BTC soared to an all-time high of $69,000.
The cryptocurrency industry had a market capitalization of about $3 trillion at its peak, but in recent months, the value of digital currencies has dwindled to $0.8 trillion.
Meanwhile, investors in bitcoin businesses such as Microstrategy and Tesla (NASDAQ:TSLA) are rethinking their decision to invest in the digital commodity. According to StockApps, the decrease in BTC reduced Tesla’s financial sheet by $440 million. Tesla stockholders, however, aren’t the only ones dealing with this problem, as a StockApps financial expert explained:
“Tesla isn’t the only company feeling the drop in bitcoin’s price. Several companies that have invested a portion of their assets in bitcoin are suffering significant losses. “
While Tesla and others wait to see how the market evolves, bitcoin miners have responded to lower pricing. JPMorgan (NYSE:JPM) discovered that the cost of generating one BTC has dropped by roughly 50% in the last month. They were worth 24,000 dollars at the start of June, but are now worth only 13,000 dollars.
This decrease can be attributed to miners utilizing more efficient gear to save money on power. Data from the Cambridge Bitcoin Electricity Consumption Index backs up this claim. This scenario, however, may work against the cryptocurrency’s rebound, as JPMorgan explained:
“Lower electricity demand is clearly helping to increase miners’ profitability. They have less pressure to sell bitcoin inventory to raise cash or reduce debt, but lower production costs could have a negative impact on bitcoin’s price outlook going forward. Some market participants view production costs as the lower limit of bitcoin’s price range in a bear market. “
Bitcoin price technical benchmarks
Bitcoin is currently losing -0.43% to a BTC/USD price of $19,750. After yesterday’s tumble with the US inflation data, a meteoric rally took place, which even led to the daily closing price being above the psychologically important $20,000 mark.
For further price development, it will be decisive whether this daily closing price can be confirmed today. If so, expect a test of the 23.6% Fibo retracement of $21,110. Beyond that, the room for further gains towards the 38.2% Fibo retracement of $23,263 would increase.
On the other hand, if the day’s closing price is on the other hand, losses could be accentuated towards the cycle low of $17,630.
