The most popular cryptocurrency, Bitcoin, has re-entered the $28.K support line. The token had crossed the $30k threshold at press time, following a 3% increase in the past 24-hours. However, there is room for more. Bitcoin may rally if it breaks through the $30.6K barrier zone.
What Motivates Bitcoin’s Bull Trend Right Now
CryptoQuant CEO Ki-Young Ju made a tweet in his story earlier today. Various variables, like institutional acceptance, have helped the largest cryptocurrency. For instance, to ensure they reach greater levels in the cryptocurrency market. But, energy businesses could be the catalyst for the next Bitcoin bull market. Energy businesses and traditional financial institutions might drive the next Bitcoin bullish trend.
Renewable energy sources emerged as the most affordable option for generating power. US EIA figures show that wind and solar might account for the increases in US electric capacity generation in summer. According to the executive, hydroelectric energy is the most popular Bitcoin mining source.
62% of cryptocurrency miners use it. 15-17% of the current market share goes to solar and wind. Over time, the Bitcoin mining sector has improved transparency, sustainability, and understanding.
One of the causes is the overwhelming level of funding. Blockstream and Square constructed a battery- and solar-powered BTC mine in Texas. Collaborations like these could help Bitcoin achieve new highs. By partnering on a solar-powered BTC mining initiative with Tesla and Blockstream. Price instability is, after all, a component of such a high. Bitcoin has lost roughly 56% since November 2021, but the hash rate has climbed by 75%.
According to Ki Young Ju, the market may be cool. But, the underlying fundamentals are blazing hot, thanks to mining rigs. BTC HODLers have weathered the storm and are still holding the flagship asset. The addresses with 0.1+ coins, for example, have reached an all-time high.
So, Is There a Sell-off Going On?
Silvergate Bank loaned MicroStrategy $205M in BTC as collateral in March. They use it to buy more digital currency. Currently, the software firm has over $5B in Bitcoins worth over $30.7K, with a cost basis of over $30,000.
People don’t value MicroStrategy compared to its cryptos. That’s because of its low market capitalization of $2.29B. Investors are also concerned about the firm’s huge debts and faltering software companies. It will include access to an unstable commodity.
As a result, it won’t surprise the market if the company sells off. Investment banks must be watching for a sell-off during difficult times. The LFG, among the largest BTC holders, had to sell its BTC. LFG and Terraform Labs have reduced their financial wallet of every BTC, amounting to 42,530 BTCs valued at $1.3B.