The Bitcoin price (BTC/USD) has returned to sub-$4,000 levels due to a downtrend that has dominated the market since yesterday’s afternoon session.
The original cryptocurrency had somewhat positive morning session, as it managed to rebound from a six-day low of $3,832.75 and retake the $4,000 level. However, the coin spent the next few hours just above that level, unable to further its advance. After reaching an intraday high of $4,075.63 in the afternoon, Bitcoin went on a downward trajectory and eventually returned to sub-$4,000 levels. Bitcoin finished the session at $3,956.89, up from its opening level of $3,886.29.
Bitcoin has continued its downward movement in today’s morning session, with its price falling to as low as $3,853.20 in recent trading. At the time of writing, the Bitcoin price was hovering around $3,870, according to data from digital currency tracker Coinmarketcap.
With the Bitcoin price having stayed below $6,000 since mid-November, there have been concerns that miners struggling to remain profitable will shut down their Bitcoin mining rigs. However, according to Fundstrat Global Advisors, the cost of mining has also declined in recent weeks.
“Our model suggests the cash cost of mining each BTC on the Antminer S9 is now $4500, down from $5300 in September,” Sam Doctor, head of data science at Fundstrat Global Advisors, wrote, as quoted by MarketWatch. “Depreciation expense has fallen to $1300 vs. $2000 in September, reflecting a lower rig cost as newer devices have come to market. Fully loaded breakeven is now $5700, compared with a breakeven of $7300 in September.”
Last week, the third-largest mining pool in the world, F2pool, estimated that between 600,000 and 800,000 miners have shut down since mid-November. According to F2pool’s founder Mao Shixing, the drop is most likely driven by miners using older equipment such as the Antminer T9+ and AvalonMiner 741.
In today’s trading, the Bitcoin price stood at $3,871.95, as of 09:42 GMT. The digital coin has lost 3.3% in the past 24 hours. Its total market cap currently stands at $67.4 billion.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.