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Despite the good news here and there, the crypto industry has taken a huge hit this week. Most of the major cryptocurrencies fell.
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Will bitcoin rise again?
It’s a very red week for crypto. Most of the cryptocurrencies have lost gains in the last seven days. On the other hand, heavyweights like Bitcoin and Ethereum, even recorded losses in the double-digit percentage range up until the weekend.
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Bitcoin is currently down 13% and trading for $21,309, according to CoinMarketCap data.
Ethereum, the world’s second largest cryptocurrency, has gained nearly 18% to trade at $1,635 at the time of writing.
Even a series of good news could not stop the massive fall of Ethereum. Over the past few weeks, the price of Ethereum has seen a slight boost due to the upcoming “Merge” upgrade. This will transition the network from the energy intensive Proof of Work (PoW) consensus mechanism to the 99.95% greener Proof of Stake (PoS) mechanism.
In a note to investors, the banking giant JPMorgan emphasizes: The upgrade of Ethereum will be good for crypto exchange Coinbase. The crypto exchange has a 15% market share of Ethereum and offers an Ethereum staking service to institutions. JPMorgan believes 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 shows increased demand for .ENS domain names, which offer an alternative to the random strings of numbers and letters that usually make up crypto wallets.
Almost all say cryptocurrency went into the weekend down about 20%. For example, Solana is down 21% at $36, Polkadot is down 22% and is currently trading at $7.42. Cardano is down 19% to 46 cents, Avalanche is down 23% to $23. On the other hand, polygon fell 21% to 80 cents. Uniswap fell 21% to $7.18. Ethereum Classic fell 24% to $34.
Bitcoin miners record losses
On Monday, publicly traded bitcoin mining company Bitfarms reported a second quarter loss of $142 million on rising energy prices.
During the quarter, the Quebec-based company sold 3,357 bitcoins 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 to the US Securities and Exchange Commission.
Bitfarms is not the only crypto mining company making losses. Last month, Argo Blockchain PLC became the youngest bitcoin miner to sell more bitcoin than it mined in a month. As of the second week of July, the company had an outstanding balance of $22 million on a Bitcoin-backed loan from Galaxy Digital.
Arcane Research data shows that publicly traded bitcoin miners like 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.
The recent combination of rising energy prices and a bearish crypto market is clearly having a negative impact on the mining industry.
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