Chinese investors are waiting to “bottom” BTC at $18000, the production cost of 1 BTC is $13000

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2022-07-18 19:02:42

The World’s Leading Bank of America JPMorgan It is estimated that the cost of mining 1 Bitcoin decreased to only 13,000 USD with the main reason coming from the reduction in electricity consumption. Accordingly, Chinese investors are thinking.

Bitcoin production costs decrease

The significant reduction in electricity consumption is a positive step forward for Bitcoin, given that today’s miners have reduced ability to liquidate their holdings for the purpose of clearing leverage.

But, from another perspective, JPMorgan think that this bodes ill for the Bitcoin price. The bank calculates that the intrinsic value of Bitcoins is closely related to the cost of creating them.

Based on total assets under management, JPMorgan estimates Bitcoin’s fair value at around $38,000 per BTC. Analyst Nikolaos Panigirtzoglou explains that the cost of production is used to gauge how low the price of Bitcoin can fall during a prolonged market downturn.

So, the lower the production cost of Bitcoin, the lower the outlook for Bitcoin price, despite the fact that miners will continue to work as costs fall.

Report of Panigirtzoglou The market leader said that the market’s leading cryptocurrencies may continue to decline in the third quarter of 2022 as miners sell their holdings. In the last week, Bitcoin hashrate has slipped below 200 EH/s, falling to 178.44 EH/s. In terms of Bitcoin mining difficulty, the data shows that it is currently on track for the 3rd consecutive decrease in difficulty in about a week.

Chinese investors are waiting for the opportunity to “buy” Bitcoin dip at $18,000

Despite having lost more than 70% of its value since last November’s peak, the current price of Bitcoin has not satisfied some audiences. For example, Chinese investors when they believe in being able to buy BTC at just $18,000, according to WuBlockchain posted.

“In a survey of more than 2,200 participants from the Chinese crypto community on Weibo, 8% believe Bitcoin and ETH can be bought dip when the price drops to $18,000/$1000, 26% will buy at $15,000. / $800, 40% will buy at $10,000/ $500”.

Survey of over 2200 crypto investors in China

Overall, the results of the survey show that 8% believe Bitcoin will hit $18,000 and ETH will drop to $1,000 in the near future. Many investors even claim to buy BTC for $15,000. The biggest percentage is betting on BTC dropping to $10,000 and ETH to $500.

This survey only recorded on a small file of crypto investors in a certain location or region, but this can still be a representative result of retail investor sentiment from many different places.

The survey data also shows that the majority of traders and small investors are not ready to buy Bitcoin and ETH at current prices with the belief that these two coins will fall further. This flow of opinion also correlates with the predictions of a number of other analysts and investors.

The desire to buy dips of some private investors is in a state of “fading out” until these digital assets reach the above values.

To be fair, this is a trend associated with negative price performance, where investors get scared and avoid investing until a signal of a reversal occurs.

Additionally, several on-chain and market indicators suggest that Bitcoin is experiencing a massive sell-off and is currently at an all-time low. Profits of traders, miners, unrealized losses and other indicators cannot be counted. At the time of writing, Bitcoin and ETH are trading at $20,577 and $1,197.

BTC price chart at 10:47 AM on July 15, 2022​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​.
BTC price chart at 10:47 AM on 15/07/2022
(Source: Binance)

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