Is This Why Bitcoin Suddenly Rebounded Yesterday?

[mirrasel]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

[joinfree]

The rebounding of the price of bitcoin has no linkage to the cost of expenses incurred in running a mining rig. The market was oversold and people sold in panic when there was a deliberate dump in bitcoin. This made the price plunge that deep but this stabilize with time and that is why we have seen the gradual rise in bitcoin. Let's hope next year brings up some good returns of investment in bitcoin.

[adaseb]

This seems to be a hot topic lately and I am seeing it everywhere. People are assuming that mining cost is related to Bitcoin price but that is not true. Basically the hashrate is mostly followed by price. When the price goes up, so does the hashrate. However the opposite is not true. When price goes down the hashrate can either go down, stay the same or even go up. Usually when price goes down the hashrate stays the same or it goes up. So obviously mining becomes unprofitable for some, they just stop mining and move on. The price will not jump so that mining is profitable for mining farms, doesn't make sense.

Price had a huge surge by around $1000 or so because it landed on previous support and there were too many people short. The funding rate was very negative on Bitmex and obviously there would be some type of short covering rally which is what we saw. People either shorted the bottom or they shorted before the drop and their trailing stops hit. That's why the rebound was so huge and now we are trading sideways until the market decides which route to take.

[EdvinZ]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

Of course the miners will not sell Bitcoin is below the cost of production. Otherwise, the business was deprived of any meaning. I think that today's price is the objective price of Bitcoin at the moment. Below 6000 dollars Bitcoin is unlikely to fall. The recent drop to 6450 and the subsequent rapid rise to 7450 showed that there is a good level of support within these price levels.

[imutlinda]

when prices go down I'm sure there will be a rebound in prices, because when bitcoin reaches their support people will automatically buy it and create price reflections. and I think the price reflection some time ago provided quite a lot of advantages especially for those who took place at that time

[bitbunnny]

I don't think there is any connection between price rebound and cost of mining. It's hard to tell exact reason but probably there was a disbalance in demand and supply. Price pulled back again and further corrections are possible also so don't be surprised if in the next days we see price below 7000$.

[ChuckBuck]

There is no relationship here. All I see is your conjecture. The average cost of mining is only part of the value of bitcoin. A small factor cannot make a big impact. Do you understand that? The average cost will be adjusted by the price of bitcoin, because when the price of bitcoin is low, in the event that it does not generate profits for miners, the miners will leave, and the cost drops. Or high bitcoin prices, many people will mine bitcoin, which means that the average spend increased. Or to be precise, the cost does not determine the value of bitcoin; on the contrary, the value of bitcoin determines the cost.

[iamsheikhadil]

Well, I think it has less to do with miner costs and more to do with the upcoming holiday season. If you see the past trends, bitcoin and the crypto market, in general, soars high every year at the beginning of the year so probably we will see a good bull run in 2020 and it is hence indicated through it!

[btc78]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

what is sudden when Bitcoin price Bounced back?lol this is something to be thankful and not a sudden situation (not unless you are anti bitcoin)

Well, I think it has less to do with miner costs and more to do with the upcoming holiday season. If you see the past trends, bitcoin and the crypto market, in general, soars high every year at the beginning of the year so probably we will see a good bull run in 2020 and it is hence indicated through it!

soaring high in the beginning of the year?but remember Ethereum Grows high last january 2018 .

but yeah 2020 is expecting to bring fortune to all of the holders and miners so lets see what will happen in the 3rd quarter of next year because the effect will take place before end of year.

[Kemarit]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

I really don't understand why you guys keep a connection between the mining profitability and the sudden spike, there's no correlation unless miners are manipulating the price which would I assume won't fit their narrative. Don't listen to Forbes, they've just put articles there's for click-bait and without proper research specially crypto news.

Everything is still based on supply and demand here.

[blckhawk]

I think what most people believe is that it is all tied up, but no concrete evidence is to be found. They believe that hash rates correlates to the price of Bitcoin, and also hash rates is connected with the cost of mining, in which also is connected with the current price. Still, there are no studies to be found that proves such theoretical statement. There are still a lot of factors, the market is volatile and whales could manipulate any time they wish.

[sunsilk]

In what specific country that research coin shares did? I always see this kind of topic and they always think that miners keep on mining because of the current price and the cost of mining is profitable for them which depends on the daily prices.

There's a different approach for every miner and the cost of doing it varies because the cost of electricity isn't the same. It could be the average but it's not the actual. Much better to get details from the miners themselves rather than from the media.

[X-ray]

Not a strong reason but actually does make sense, it could somehow change the perspective of people regarding bitcoin which is "Created out of thin air" while actually it's being mined that takes that much money to generate. Though, the difficulty is too high as of now but it'll be no problem if the mining rigs out there are powered with renewable energy. Other than that, there's no real correlation regarding the sudden price spike with this news.

[znation]

It could also be a reason that Bitcoin is rising, but we don't know exactly what it is, sometimes when the price rises without any good news but when there is a lot of good news, the price goes down. I think this market cannot know in advance what happens when it increases or decreases.

[Genemind]

The reason behind Bitcoin's price changes is undefined and we can't figure the exact reason out. There will always be conclusions and speculations but that's part of its volatility. Every event has an impact on its price and it can be a positive or negative effect. There will surely be more events that would influence its price soon.

[alyssa85]

The rebound was down to short positions closing (by buying bitcoin) as traders close their books prior to Christmas. Yesterday was Friday, for many the last working day before Christmas.

Nobody wants to be worrying about open positions while they are eating their Christmas dinner.

Normal trading will resume after the New Year!

[BitHodler]

We have had many rebounds and they all failed miserably, especially the one where the price pumped from $7.3k to over $10k. If you fall below $7.3k after such a bullish move, that's ultra bearish. There is no way to describe it differently.

Do I think that we have had the worst of the selling? I believe so, but that doesn't mean that we can't drop further. We haven't yet seen a capitulation candle that generally gets most of the weak hands shaken out similar to the one of last year.

[aioc]

Coin Shares researchers found the average cost of mining a Bitcoin is approximate $6,300. So, the price jumped to $7,300 yesterday. And it’s profitable for the miners Forbes report said. What do you think?

I don't see much logic on that, all I know is the holiday has a big impact is the market condition, people are selling their shares because of the holiday and the coin made a rebound because people are looking on the coming year as the best time for another all-time high and so they are buying these dips, I expect the price to go up to $7500 before the year-end.

[pakhitheboss]

There is no relation of mining Bitcoin with the price of Bitcoin. Panic sellers caused the market to go below $7k, which was an opportunity for the whales.

They bought it and hence you can now see the price above $7k.

[piebeyb]

has nothing to do with mining costs, even though their income will be less than the previous income, but do you think miners have ever bought bitcoin or just mine it and incur costs for mining, the price of bounce back yesterday is a reflection where if you understand the chart analysis you might will understand the reflection of the price from the point where buying support is located, this is called a rebound, not a matter of mining costs