After suffering 9 consecutive weeks of losses for the first time in its history, bitcoin is up around 8.3% week-on-week.
After suffering 9 consecutive weeks of losses for the first time in its history, bitcoin is up around 8.3% week-on-week. A growing number of investors suspect this uptick heralds a long-awaited and much anticipated bottoming out. Some of early May's gloomy forecasts now look perhaps overstated — bullish investors are increasingly confident it is these overly pessimistic expectations that are priced into the token's value.
There is growing concern in the crypto community that lower risk appetites may prompt a slow-down in VC funding and dampen the long-run growth of crypto ecosystems. But, contrary to these fears, J.P. Morgan recently proclaimed they expect VC funding to continue throughout 2022, also reaffirming February's $38k bitcoin fair price valuation.
The 14-day moving average network hashrate is down for the second consecutive week from 216 EH/s to 210 EH/s. Having been adjusted down 4.3% last week, the largest such adjustment since July 2021, difficulty is expected to fall again sometime next week. That, along with a more sanguine price outlook, is helping to sow the seeds for a recovery in hash price. Currently at $0.135, it has so far lifted 15% since its 18-month $0.117 rock-bottom. While this is some cause for celebration amongst miners, recent downwards difficulty adjustments are a fleeting temporary symptom of lower mining profitability itself, rather than any structural phenomenon. Only a recovery in BTC price can bring a sustained recovery in mining profitability.