Bitcoin Drops Below $60,000, Miners Face Potential $10 Billion LossBitcoin has been on a downward trajectory after reaching a two-month high of $66,500 on September 27th, experiencing a total decline of approximately 7% over the past three trading days. Starting on the evening of October 1st, Bitcoin rapidly dipped from $63,800 to a low of $60,128
Bitcoin Drops Below $60,000, Miners Face Potential $10 Billion Loss
Bitcoin has been on a downward trajectory after reaching a two-month high of $66,500 on September 27th, experiencing a total decline of approximately 7% over the past three trading days. Starting on the evening of October 1st, Bitcoin rapidly dipped from $63,800 to a low of $60,128.1, registering a daily drop of over 4% on October 2nd. As of this writing, the decline has moderated, with the latest trading price at $61,259.7, representing a 2.55% drop.
Market data reveals that in the past 24 hours, the number of liquidated positions across the entire cryptocurrency network reached 157,000, with a total liquidation value of $510 million (approximately 3.6 billion yuan). According to Securities Times, Bitcoin's continuous decline has brought an end to September's rebound, dampening investor optimism about entering the most rewarding month in the history of cryptocurrencies. Statistics show that since 2013, Bitcoin has only closed lower than the previous month in October twice.
"Following the strong surge since early September, technical indicators now suggest Bitcoin faces headwinds," said Brian Strugatz, head of spot trading at major cryptocurrency brokerage FalconX. "Stochastic RSI is in overbought territory, and large Bitcoin holders on exchanges are starting to sell."
The market consensus points to the diminished expectation of a Fed rate cut and cooling ETF demand as the primary drivers behind this recent Bitcoin downturn. While Bitcoin spot ETF fund inflows are becoming a crucial factor influencing Bitcoin's trajectory and the broader virtual market, market expectations generally anticipate this wave of downward volatility to continue.
Zhao Wei, senior research analyst at OKX Research Institute, stated that the market is awaiting new information and signals to determine the next move. "After rallying to the $65,000 resistance level, I saw weakening demand for spot Bitcoin, with many traders starting to take profits," said Chris Newhouse, head of research at Cumberland Labs.
Significant Decline in Miner Revenue After Bitcoin Halving
Since the Bitcoin halving event in April, Bitcoin miners have experienced a substantial decrease in revenue. It's understood that Bitcoin's daily production varies but revolves around the block reward system, averaging 6.25 Bitcoin generated every 10 minutes. Based on previous block rewards, this equated to approximately 900 Bitcoin produced daily. However, following the halving event, this figure has been reduced to roughly 450 Bitcoin per day.
Currently, Bitcoin's price hovers close to pre-halving levels (around $60,000 to $65,000 per coin), yet miners' output has been halved. Calculations indicate that if miners sell Bitcoin at $60,000 per coin, the entire mining industry would lose nearly $10 billion in revenue over the year following the halving.
Market Analysis
The decline in Bitcoin's price and miner revenue reflects a period of adjustment within the cryptocurrency market. Due to the weakening expectation of Fed rate cuts and cooling ETF demand, market sentiment towards future Bitcoin pricing has become more cautious. Additionally, the decrease in miner revenue post-halving adds further pressure to the market.
Currently, the market is seeking new information and signals to guide its next move. Investors need to closely monitor the Fed's monetary policy, developments in the ETF market, and the impact of the Bitcoin halving on miners and the broader market.
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