What was once thought to be an unfounded rumor is now a reality, after experts discovered a possible pattern in Bitcoin’s price. And that is that fluctuations in the value of the cryptocurrency will be driven, nothing more, no less, by Chinese miners and US merchants.
This was reported by an article in Bloomberg, in which the differences in the Bitcoin price between the two days were assessed. Research has shown that by dawn (New York time) the price of the cryptocurrency reaches its daily minimum, while by noon that same day the price can reach its maximum point. The behavior is also frequent; Since specialists noticed its presence on several days this past week.
The explanation for this observed trend can be traced back to hypotheses that have already appeared in the cryptocurrency ecosystem for several years: mining in China has an effect on the bitcoin price. And when dawn falls in New York, in the Asian and European markets, the newly mined bitcoins will be sold.
Miners are from Asia, but especially China, which accounts for 65% of the bitcoin hash rate, They need to sell a portion of the bitcoins they mine daily to stay up and running. Profits are invested in operating expenses, such as electricity and the purchase of new equipment. As a result, they are among the market members that offer the largest number of Bitcoins for sale.
On the other hand, Bloomberg specialists indicate that there is a growing demand for bitcoins in the United States. In this regard, with more and more traders interested in purchasing the cryptocurrency, bitcoin tends to rise when the US market is most active. There is a trend that they see as being driven by the ongoing buying of BTC that Microstrategy is making, As well as other big-name companies like Tesla.
“There are a lot of mining companies in Asia, and the pattern that we’re seeing is that the sale is coming from Asia. This is intermittent, but the purchase is coming from the US where people are duplicating Microstrategy,” said Richard Beaurth, CEO of Diginex, a company dedicated to digital assets.
In addition to the positive opinion on Bitcoin generated by the millionaire purchases from Microstrategy, it is important to note that the asset has been recommended by significant investors as a way to protect value in the face of the inflationary impact the issuance of economic packages has had due to the coronavirus crisis. In part, it could be that money entering Bitcoin. Personalities such as Paul Tudor Jones, Stan Druckenmiller and Howard Marks contributed to the vote of confidence in Bitcoin to boost its bullish trend.
