Bitcoin continued to fall, and the complexity of its mining decreased by 16%, the community criticized the “green” initiative of Elon Musk, Circle raised $440 million, and other events of the outgoing week.
The price of bitcoin continued to decline, the fear index fell to a minimum
Bitcoin managed to briefly rise above the $40,000 mark, but soon the price resumed its decline.
Depending on the exchange rate of digital gold, the market capitalization briefly returned to values above $1.8 trillion. However, by the end of the week, the indicator fell to $1.6 trillion.
At the time of writing, the top ten most capitalized assets look like this:
Dogecoin and Internet Computer showed the largest drop in the last seven days — -12.1% and -26.4%, respectively. During the same period, Cardano (+12.6%) and Binance Coin (+9.9%) significantly regained their positions.
The capitalization of the first cryptocurrency is $667 billion with a dominating index of 41.7%, according to CoinGecko.
In a conversation with ForkLog, most experts attributed the correction of bitcoin to the overheating of the market.
Against the background of uncertainty and the sideways movement of the bitcoin price at the $35,000 mark, the cryptocurrency fear and greed index fell to the 10 marks.
Using Glassnode data, Morgan Creek Digital co-founder Anthony Pompliano found that whales purchased almost 122,600 BTC amid the market crash. Most notably, the big players showed themselves in the United States, as evidenced by the $3,000 premium on Coinbase relative to other cryptocurrency exchanges during the rebound.
Chainalysis experts concluded that large investors bought 77,000 BTC amid the fall in the price of bitcoin.
According to the results of the last recalculation, the complexity of mining the first cryptocurrency decreased to 21.05 T. In relation to the record level reached on May 13, the indicator decreased by 16%.
Service BTC.com predicts a drop in complexity of almost 16% – to 17.72 T.
For most of this month, the hash rate of the bitcoin network shows a negative trend. Since the second half of May, the interval between blocks has consistently exceeded 10 minutes.
It is noteworthy that the fall in hash rate began a week before the news about China’s intention to take tough measures against cryptocurrency mining and trading.
“Some miners have started migrating from the northern Chinese provinces to the hydropower-rich Sichuan. Power plants in Sichuan have started to restrict supplies to energy-intensive industries, including mining, due to the late rainy season this year,” commented Wolfie Zhao of The Block.
Elon Musk again ran into criticism
During a meeting with Elon Musk, North American mining companies decided to form the Bitcoin Mining Council. It is designed to reduce the industry’s greenhouse gas emissions.
The meeting was organized by the head of MicroStrategy, Michael Saylor. The conversation with the Tesla founder was attended by the heads of Argo Blockchain, Blockcap, Core Scientific, Galaxy Digital, HIVE Blockchain, Hut8 Mining, Marathon, and Riot Blockchain.
According to Musk, the companies agreed to disclose data on the use of renewable energy in their activities, as well as to share their plans in this area. The billionaire added that they have pledged to encourage other miners to do the same.
Many bitcoin supporters have criticized the initiative. Industry expert Ragnar Liftrasir called it disastrous for the industry because of the possibility of censoring blocks extracted without the use of “green” energy.
