Bitcoin is trading on the razor’s edge at $19,000 on Thursday with more chances of it dropping in the near future. The king crypto is testing the patience of investors this year as it barely raised in price. However, Bitcoin miners are doing their job without complaining about the ongoing harsh market conditions. Bitcoin mining is the main method to acquire BTC, as miners earn rewards for confirming transactions and securing the network. Nonetheless, if the BTC price drops dramatically in value, miners could get hit as their rewards could go substantially low.
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Frank Holmes, the CEO of US Global Investors predicted in an interview with Benzinga that Bitcoin miners could “start shutting down” their mining systems if BTC falls to $12,000. He stated that miners could halt their operations at $12,000 levels as their efforts would not break even and remain unprofitable.
“Globally, right now it’s basically implied that you’re going to have to have like $12k, and everyone starts shutting down. The average person starts shutting down (their Bitcoin mining machines).”
Holmes previously predicted that Bitcoin could outperform gold due to millennials’ preference for cryptos as their main vehicle of investment.
Though both the bulls and bears are fighting to tame BTC in 2022, miners have remained unconcerned at this point. Data shows that the Bitcoin mining hash rate reached its all-time high this month. You can read in-depth and complete details about the mining hash rate here:
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Moreover, if Holmes’ prediction comes true in the future, it could spell doom for the future of BTC. The global economy is on a slippery slope with macroeconomic transgressions. Miners shutting down their systems is the last thing the crypto world needs as the development could send BTC down.
Bitcoin: The Path Ahead
Bitcoin has more chances of heading south this year than moving north due to the weak global economy. Rumors of an upcoming recession in 2023 are brewing and could spell danger for the markets. BTC would face its first recession (if it comes) after being in the markets for 13 years. Which direction the crypto could go during a recession will be written in history.
It is advised to remain cautious with BTC at its current level of $19K. Several financial analysts predict that BTC could fall another 50% from here and reach anywhere between $10K to $12K. You can read the price predictions here.
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At press time, Bitcoin was trading at $19,212 and is up 0.3% in the past 24-hour day trade. The crypto is down 72.2% from its all-time high of $69,044, which it reached in November last year.