Cryptocurrency Trend Table (UTC time)
The past week saw the price of Bitcoin rise surpassing an important resistance level at USD$8,800. The price seemed to drag as it reached the critical USD$9,000 level with upward traction.
However, strong pressure at a USD$9,200 celling point caused the Bitcoin price to drop back down to USD$8,700 level over the weekend.
Currently, Bitcoin is struggling to keep above USD$7,700. If it does find stability and gathers enough force, we may see prices climb back into the $9,000 range before the next report.
Cryptocurrency in relation to other markets
We selected some alternative investment markets to determine to what extent they correlate with the crypto markets. As we can tell, there was no significant correlation between BTC and other alternative investments. Correlation between BTC and stock market volatility is low this week.
Cryptocurrency Market Panic Index
Instead of using social media panic factors that are difficult to quantify, we calculate the BTC market panic index completely based on volatility. Based on the CBOE calculation method for the S&P VIX index, we use the near- and next-term put and call BTC options to calculate the VIX trend chart (The lower the VIX, the lower the market panic). As shown on both graphs, the correlation between BTC and ETH panic indices is extremely low this week.
Digital currency prices (2020-03-09 UTC 12:00)
News of the week
An upstate New York power plant Greenidge Generation has established their own cryptocurrency mining business on an industrial scale, generating 50,000 USD worth of Bitcoin a day.
Bloomberg reported that the power plant is operating a Bitcoin mining farm with 7,000 miners. In the past few months, Greenidge Generation covered an area of 650 thousands sq. ft and mine 5.5 Bitcoin a day. The plant was built in 1937, located in New York Dresden. It firstly used coal for power generation, and now switched to natural gas.
The high cost of electricity is a major issue in the Bitcoin mining industry. As a result, mining companies look for regions with cheaper electricity cost to develop their business.
Greenidge is self-generating its electricity to avoid high electricity procuration costs. The report states that the power plant is using 15MW out 106MW of its total power generated for mining cryptocurrency. The previous bear market conditions greatly reduced the profits of the mining industry. However, the bull market is attracting new investors, setting new records for the Bitcoin mining hash rate.
With the next halving of Bitcoin mining rewards scheduled in May, the mining industry is facing significant changes in the coming months. The halving event will reduce the current block rewards of 12.5 to 6.25 Bitcoins.
“No matter how the halving event will affect Bitcoin’s price, we still have competitive advantages in the industry” Greendige CFO Tim Rainey said. “Due to our unique position as a CHP facility, we can profit in bad market conditions, therefore we can make a lot of profit when the market conditions improve.”