The cryptocurrency market has settled into a rhythmic motion of bullish crests and bearish troughs with major coins flipping the script. Bitcoin being the largest cryptocurrency in the market has had its fair share of scrutiny under the financial microscope. Even though BTC’s value was much below its all-time highs, factors such as profitability and number of new users.
Analysts also predict a rise in prices in the coming months if the peripherals continue to climb. The combined positive factors play a big role in boosting investor sentiment in the cryptocurrency ecosystem. The short-term rise could mainly be attributed to the recent miner exodus from China. As it stands, the Bitcoin market is expected to enjoy a profitability factor of 35 percent or more soon. Following this news, Compass CEO Whit Gibbs said:
“We are expecting a period of much higher mining profitability for Compass Mining clients. We expect miners to be approximately 35% more profitable.”
At press time, Bitcoin was trading for $34,239 with a total market cap of $ 641.9 billion. A 3.6 percent daily dip brought the cryptocurrency’s 24-hour trading volume to $24.36 billion. Bitcoin’s price action came after a bear run wiped off more than 27 percent of its total 2021 earnings. Despite this situation, proponents such as Blockcap founder Darin Fernstein were confident in the asset’s future growth. The mining exodus was also seen as an unexpected “gift” to the Bitcoin network.
Kazakhstan became the hub for a majority of cryptocurrency miners after China’s latest policy. Most of them opined that they would settle in a region where the government actually supports them rather than infringing upon their functions. One of the main reasons for this has been a mix of lack of transparent regulations and government lethargy.