News

Bitcoin Price Trades Sideways at the $24K Level, Miners Face Substantial Losses

Bitcoin price continues to trade sideways this week, with little change in trading volume over the past 24 hours. After peaking at $25k on Sunday, BTCUSD struggles to hold support and continues to decline, currently trading in the high $23k range. The 24-hour trading volume remains relatively unchanged in the $29.5 billion range.

Key Points:

  • Bitcoin continues to trade sideways with a narrowing range.
  • Miners lost over $1 billion in Q2 2022 due to crypto winter.
  • Some mining companies ended up selling machines to cover existing debt last quarter.
  • Celsius receives multiple cash injection offers, raising creditors’ hope of getting their money back from the platform.
  • BTCUSD likely to continue trading sideways this week, making its following move next week.

Bitcoin Miners in the News

Bitcoin news today is bearish; this week, BTC failed to register additional growth and break past its $25k range. According to a report from Bloomberg, three mining companies lost over $1 billion in Q2 2022. Core Scientific Inc., Marathon Digital Holdings Inc., and Riot Blockchain Inc. saw substantial losses of over $1 billion combined with the crypto winter this year.

Despite the underperformance of Bitcoin, the mining companies remain committed to the long-term haul for BTC. In addition, another mining company, Stronghold, sold over 26k machines, canceling over $67 million in debt.

According to a report from Decrypt:

Bitcoin mining firm Stronghold revealed that it had reached an agreement with lender New York Digital Investment Group (NYDIG) and another participating broker to return some 26,200 mining machines in exchange for the cancellation of $67.4 million in debt.”

Speaking of miners and debt, Celsius received approval from the judge during their bankruptcy hearing in July to build a mining operation and sell their mined BTC to cover existing losses. According to a report from Coindesk today, Celsius also received cash-injection offers and approval to sell their mined Bitcoins, providing a way to recoup investors and rebuild their company.

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This means depositors who’ve had their crypto in Celsius might end up getting repaid after all, even if it might take several months or years.

The crypto bull run from this weekend is slowing down, and Bitcoin is returning to its old sideways trading ways. It’s still better than continually losing value, as the crypto asset has been doing this year, but hopes of a trend reversal and a bull market are dying out fast.

The good news is that the cryptocurrency market remains healthy, with its capitalization remaining above $1 trillion. BTC is likely to narrow its sideways trading range this week and make its next move either this weekend or next week.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.

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Image Source: dedmityay/123RF // Image Effects by Colorcinch

Mark Arguinbaev

I'm a 29 year old cryptocurrency entrepreneur. I was introduced to Bitcoin in 2013 and have been involved with it ever since. Fun Fact: I mined cryptocurrency using my college dorm room's free electricity.

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Mark Arguinbaev

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