Bitcoin Price Prediction as Daily Trading Volume Falls Below $5 Billion – What's Going On?
As the cryptocurrency market witnesses unprecedented shifts, Bitcoin's trading volume has notably dropped below the $5 billion mark, raising questions and speculations. As of Sunday, Bitcoin stands at $25,878, reflecting a minor dip of less than 0.10%. Several contributing factors come into play.
The ongoing power crisis in Texas has impacted miner reserves, putting a brake on Bitcoin's potential price resurgence. Simultaneously, a Federal Reserve official has indicated that a concrete decision regarding digital currency remains on the horizon.
In contrast, banking giant JPMorgan has made strides in the sector by launching a blockchain-based token aimed at expediting payments. This dynamic landscape underscores the ever-evolving nature of the cryptocurrency realm.
The BTC/USD price is currently on a decline, impacted by the ongoing power crisis in Texas. Bitcoin's recovery has stalled around $25,500 to $26,000 for nearly three weeks, with no signs of improvement. Texas, a major hub for Bitcoin mining due to low energy costs and loose regulations, is witnessing miners shutting down operations due to worsening power issues exacerbated by extreme weather.
This crisis poses a threat to the network's hash rate, particularly as it affects AntPool, a significant contributor responsible for about 22.27% of Hash Power.
Miner sell-offs to cover expenses during this crisis could lead to bearish pressure on BTC prices, as previously seen in August.
The Federal Reserve's Vice Chair for Supervision, Michael Barr, has stated that the decision to issue a central bank digital currency (CBDC) in the United States is still far from being made.
Speaking at the Seventh Annual Fintech Conference hosted by the Federal Reserve Bank of
Read more on cryptonews.com
