Bitcoin and ASIC Miners’ Price Follow the Same Trajectory: Analysis

  • Adam Back, co-founder/CEO of Blockstream, said the prices of ASIC miners and Bitcoin often correlate.
  • The CEO noted that ASIC miners’ prices peaked in the 2021 bull market, the same time as BTC. 
  • The miners currently sell for under $15, but Back predicted the prices would rise as BTC value grows.

Adam Back, co-founder and CEO of blockchain company Blockstream, in a recent Analysis, said the price of Bitcoin and Bitcoin mining equipment often follow the same trajectory. Back pointed to historical data to back up his claims. 

Indeed, the CEO in the post said ASIC miners and Bitcoin prices often correlate. He noted that before the 2021 Bitcoin bull market started, ASIC miners’ prices were charting low as there was a shortage of miners at that period. 

Back said, at this time, people were optimistic about the future price trajectory of Bitcoin. Thus, when the rally started, the prices of the miners also took off, falling and rising as the digital asset charted through that bull market. 

At the same time, Bitcoin set a new all-time-high, Back stated that ASIC miners also hit their peak price of $120/Terrahash. However, he continued by saying that demand for the machines has since dropped following the drop in BTC value. 

At present, the CEO said the machines that traded hands for as high as $120 in 2021 are priced under $15/TH. He also said the price of the machines has stayed down despite Bitcoin gaining momentum this year and wiping off previous losses. 

However, Back expressed his belief in the ASIC miners rising again, which he predicted would happen as Bitcoin moves deep into bull territory. He noted that the Halving scheduled to happen next year may be a catalyst for a surge in BTC price. 

According to the co-founder, Bitcoin prices often go up six months before the Halving. But whether that would be the case this time around, he said he can’t fully predict yet. Meanwhile, the CEO had an optimistic prediction for Bitcoin recently. Back predicted that the token may rise as high as $100K on the back of institutional adoption. 

Elsewhere, CoinMarketCap data shows Bitcoin continues to sustain its $34K level, following a slowdown since the start of the week. Over the past 24 hours, BTC has declined marginally to sit at $34,196 at the time of press. 

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Comments

Post a Comment

Popular posts from this blog

Analyst: ETH Not Ready for Bull Run till Huge Correction

Image
Benjamin Cowen, a cryptocurrency strategist, is bearish on Ethereum (ETH) because the second-largest digital asset has failed to climb back above a key resistance level. In a new video, Cowen tells his 785,000 YouTube subscribers that the price of Ethereum is likely to go down because there is a lot of “anxiety” around the $1,800 mark. Cowen says that there isn’t as much “apathy” in the market as there was during the bear season of 2019/2020. “There’s so much anxiety in this level [$1,800 resistance level] like I think it’s much more likely to break down eventually… I will be the first to admit it’s taking longer than I thought it would. But I also don’t really feel that same type of apathy in the market now that I did back in 2019 and 2020.” At the time of writing, one Ethereum is worth $1,736. Cowen says that less people would care about Ethereum if the price of the second most valuable cryptocurrency fell to triple digi...
Read more

Crypto Analyst Says Selling XRP Now Is Unwise, the Bulls Are Set

Image
Ben Armstrong argued that selling XRP is unwise due to perceived underperformance. He dismissed comparing XRP to Solana (SOL) and Avalanche (AVAX). Armstrong claimed XRP’s uptrend would commence in January, urging investors to pack their bags. In a recent YouTube video, crypto analyst Ben Armstrong argued that selling XRP is unwise due to perceived underperformance. While acknowledging XRP’s historical lackluster trend, he first addressed concerns related to XRP’s failure to sustain its bullish momentum following the victory from the legal dispute. Armstrong argued that broader market conditions suppressed further gains. Furthermore, he countered critical views about XRP’s failure to engineer a bullish trajectory like other rivals such as Solana (SOL) and Avalanche (AVAX), which have seen more than 100% gains.   He dismissed such comparisons and drew parallels to Ethereum’s delayed ascent in previous cycles. Moreover, he caution...
Read more

BitBoy dismissed from FTX case as three celebrities settle

The legal fallout from the collapse of crypto exchange FTX continues, with some high-profile names opting to settle while others are dismissed entirely. Crypto influencer Ben “BitBoy” Armstrong is no longer facing a lawsuit related to his promotion of FTX. Lawyers recently filed notice that they are voluntarily dismissing claims against him. Armstrong had not yet responded to the allegations in court. Meanwhile, Jacksonville Jaguars quarterback Trevor Lawrence, YouTuber Kevin Paffrath, and influencer Tom Nash have agreed to confidential settle ments to resolve claims against them. A judge still needs to approve the deals to officially remove them from the ongoing litigation. According to recent reports, lawyers leading the case say they are in discussions about potential settle ments with other celebrities who promoted FTX, including athletes and social media stars. More deals are likely to come. The lawsuit aims to claw back money paid to celebrity endorsers and spo...
Read more