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Despite good news here and there, the crypto industry has suffered a massive slump this week. Most of the major cryptocurrencies collapsed.
Will Bitcoin rise again?
It’s been a very red week for crypto. Most of the leading cryptocurrencies have had to make gains over the past seven days. Heavyweights such as Bitcoin and Ethereum, on the other hand, even recorded losses in the double-digit percentage range until the weekend.
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Bitcoin is currently down 13% and trades for $21,309, according to data from CoinMarketCap.
Ethereum, the second largest cryptocurrency in the world by market capitalization, has crashed by almost 18% and is at $ 1,635 at the time of writing this report.
Even a series of good news could not prevent the massive decline of Ethereum. In recent weeks, the Ethereum price has been slightly boosted by the anticipation of the upcoming “merge” upgrade. In this case, the network will switch from the energy-intensive proof-of-work consensus mechanism (POW) to the supposedly 99.95% more environmentally friendly proof-of-stake mechanism (PoS).
In a message to investors, the banking giant JPMorgan emphasizes: the upgrade of Ethereum will be good for the crypto exchange Coinbase. The crypto exchange holds a market share of 15% Ethereum and offers an Ethereum staking service for institutions. JPMorgan believes that this will give the exchange a competitive advantage after the merger.
Another positive sign for the network is that registrations for the Ethereum Name Service (ENS) have doubled in the last four months. The news reflects a greater demand for .ENS domain names, which are an alternative to the random strings of numbers and letters that usually make up a crypto wallet.
Almost every leading cryptocurrency has gone into this weekend with a minus of about 20%. Solana for example, it fell by 21% to $ 36, Polkadot fell by 22% and is currently trading for $ 7.42. Cardano dropped 19% to 46 cents, Avalanche shrank 23% to $23. Polygon, on the other hand, plunged 21% to 80 cents. Uniswap fell 21% to $7.18. Ethereum Classic fell by 24% to $ 34.
Bitcoin Miners record losses
On Monday, the listed Bitcoin mining company Bitfarms reported a loss of $ 142 million in the second quarter due to rising energy prices.
During the quarter, the Quebec-based company sold 3,357 Bitcoin for $69.3 million to pay off a loan from Mike Novogratz’s Galaxy Digital. At the end of June, the company owned 3,144 BTC worth about $ 62 million, according to a Report reported to the U.S. Securities and Exchange Commission.
Bitfarms is not the only crypto mining company with losses. Last month, Argo Blockchain PLC became the latest Bitcoin mining company to sell more Bitcoin than it has mined in a month. In the second week of July, the company had an outstanding balance of $22 million on a Bitcoin-backed loan from Galaxy Digital.
Data from Arcane Research shows: Listed Bitcoin miners such as Marathon Digital and Riot Blockchain sold more Bitcoin in May than they were able to mine. A huge change from the first four months of the year, when miners sold only 30% of their earnings.
This makes it clear: the recent combination of rising energy prices and a crypto bear market is having a negative impact on the mining industry.
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