Why bitcoin is growing, the importance of July 4th for bitcoins!
Yes, today is July 4th and Bitcoin continues to rise above $ 35,000. As we announced yesterday, Bitcoin price action was expected to continue in the same way. Even after that, the SafeTrading team can continue to see growth in the short term. So why are bitcoin trading bots popular today, why is July 4th important for Bitcoin?
Bitcoin celebrates the Independence Day of the USA
For years on July 4th, Bitcoin tried not to fall as much as possible. If we take the last five years, then only in 2019 the price decreased (by 6%). Entering July at an extremely risky price, Bitcoin could have dropped below the 32,000 level, but this did not happen. On the third day of the new moon, the price began to glow green, and on July 4, the US Independence Day, the price continued to rise.
The bitcoin price has been trying to close July 4 in green since 2015, which is now considered a holiday. On US Independence Day, everyone throws fireworks whenever possible, and the markets say, “Bitcoin started Independence Day fireworks,” when Bitcoin turns green on July 4th.
The price rises, bitcoins are easier to produce
Bitcoin miners are mining Bitcoin with production difficulties at a time when the price was $ 9,000. In other words, they produce 350% more profit. This is extremely important because the increase in miners’ income will reduce the pressure of sellers or use of bitcoin trading bots. The difficulty of mining bitcoins is supporting miners with record drops.
One of the most populous groups among holders is miners. Producers who hold bitcoins (BTC), which they produce continuously for a long time, profit at prices they deem reasonable and do not sell beyond that. However, due to the fact that FOOD hit the markets, sometimes miners threw away firewood. For example, we saw this clearly in the latest Chinese news: the miners got scared and sold a lot of assets, but the cryptocurrency ecosystem is rewarding them. They make more money with less effort with SafeTrading.
Independence Day of the United States
America won independence 245 years ago today, July 4, 1776, against the United Kingdom. Today (July 4) is a federal holiday throughout the country, which has been celebrated for years. The most important national holiday of the country – July 4 – is celebrated by all residents with fireworks.
American flags are flown in every corner of the United States, and the memory of their relatives who fought for their independence 245 years ago is honored. Today special baseball tournaments are organized, and even families who have the opportunity organize such events among themselves. The must-have event of Independence Day (4th July) is the evening barbecue parties.
Today, all Americans and bitcoins are celebrating US Independence Day.
This data suggests that the fall in bitcoins (BTC) is over!
The bitcoin price has dropped more than 50% from the 64,000 level. Compared to the movements of previous seasons, this decline clearly shows that we have entered a bearish period. However, the downward price movement that has been going on for several months may now end. Because some of the data at the moment has dropped to these numbers only when bitcoin saw low levels.
Many analysts now believe that we are at the end of a recession. This is evidenced by the difficulty of mining bitcoins, the hash value of which has dropped by more than 50% and has now fallen to a record level. These sudden changes due to pressure from China did not negatively impact the markets as expected.
Negative difficulty adjustments made in the past year resulted in some price reductions. However, today’s update to the difficulty of bitcoins has led to an increase in the price. The fact that the price is rising while production has fallen sharply indicates that the current price is low.
Bitcoin miners strive for record profits
In other words, miners outside of the China region who were able to continue their operations are in luck. They produce Bitcoin (BTC) on the same terms as at $ 9,000 and can sell it for 300 +% more. While miners can make profits as low as 3/1 of the current price, they are literally swimming in money right now by the data of SafeTrading.
Of course, the global hash rate will return to normal with the transfer of operations. The closure of operations in China has made crypto-friendly regions like North America even more viable. Moreover, compared to China, which uses 60% of its energy from fossil fuels, North America will bring more benefits to Bitcoin in the future. Most North American countries generate energy using hydroelectric power plants. This situation, which will reduce Bitcoin’s carbon footprint, coupled with the potential for pressure from China to drop to zero in the future, makes Bitcoin’s six-figure year-end price not a dream.
Bitcoin miners do not sell
It is important that investors do not put pressure on the markets to sell, and bitcoin miners are among the largest investor groups. Miners who constantly produce and store bitcoins (BTC) do not sell because they think the current price is low.
When the difficulty level of bitcoins drops by about 30%, there is no reason to push miners to sell. The level of difficulty, which is expected to persist for at least the next 3 months, will also increase the profitability of miners. The difficulty level, which reaches the normal level in a maximum of 6-10 months, will satisfy miners for a long time.
The end of the fall of bitcoins
If we look at the current situation, the event we left behind should not be taken lightly, China was an important region both in terms of population and active investors, and this place has been largely lost. The all-out war waged by the Chinese government against cryptocurrencies has created serious pressure from sellers.
A significant proportion of investors in the country sold their assets for fear of going to prison or facing problems in the coming years. The Chinese government, which has abused cryptocurrency more than ever before, is now openly threatening its citizens. Banks do not transfer to crypto exchanges.
If you look at the event from a broad perspective, you can easily see that the air generated by China does not do the expected damage to price. The data provided here does not contain investment recommendations and is transmitted as part of the comments. In high-risk areas such as the cryptocurrency markets, you need to make investments based on your own research and experience.