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•Investors are not buying bitcoin, although its value has dipped below $50000
•Upcoming $1.5 billion bitcoin options set expiry ahead
•Energy availability plays a vital role in Bitcoin mining
Bitcoin currently has dipped below the $50000 mark after hanging on the $51000 for six weeks. It is trading at $48454 and is down by 10.15% in the last 24 hours.
The upcoming Options Expiry may influence price dip
But, as we know, people who invest in cryptocurrency are more short time-oriented and are often optimistic about their investment. However, as bitcoin’s price dipped below $50000, major investors are still skeptical about buying it, which implies that investors are becoming bearish. The main reason for the recent price drop may be the upcoming $1.55 billion options set expiry that will take place on 23rd April.
A lead of $340 million for Bulls below the $57000 Mark
According to Cointelegraph, an advantage of $340 million below $57000 is confirmed for bitcoin bulls. Hence, bulls playing neutral despite an 18% dip in bitcoin are pretty valid. Moreover, the recent Chinese coal mining incident may also have influenced the descent. Bitcoin’s processing power is heavily dependent on energy resources; hence the absence of both coal and electrical energy in China’s Xinjiang territory may have affected the processing power.
This also points out that Bitcoin mining is majorly popular and concentrated in regions where electricity is available at low prices. However, major cryptocurrency traders are neither buying or selling bitcoin at any price level.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
