Bitcoin
Bitcoin Mining Is Tougher Than Ever Yet CleanSpark Expands
CleanSpark purchased 7 new mining facilities in East Tennessee, consolidating operations in a new region. These investments come at a difficult time for Bitcoin miners.
The company hopes to close some facilities before the end of the month to carry out upgrades for a long-term plan.
Tennessee’s Mining Hub
On September 11, Bitcoin miner CleanSpark announced that it would acquire seven new mining facilities in East Tennessee. CleanSpark is a low-carbon mining firm that primarily uses renewable electricity to power its operations, making East Tennessee a particularly attractive destination.
According to court documents related to CleanSpark’s recent purchases, all seven facilities are preexisting mining operations that changed ownership. In other words, CleanSpark is consolidating the area’s mining infrastructure, not expanding it as a new hub.
These purchases amounted to a sum of $27.5 million, and CleanSpark will close these sites before the end of the month. After this closing, CleanSpark will conduct a series of upgrades, using S21 pro miners to increase “the company’s current hashrate by over 22 percent,” according to the press release.
“With this additional 5 EH/s expected to begin hashing over the coming weeks, we now expect to achieve 37 EH/s before the end of 2024. As we’ve previously discussed, our timing of the market on mining server purchases intentionally locked in low prices so that we could take advantage of opportunities like this and immediately fill acquired data center space,” Zach Bradford, CleanSpark’s CEO, said.
Bitcoin miners have moved to East Tennessee in the last two years for various reasons. The region is attractive to new investors due to cheap land and friendly mining regulations. However, it is the vast hydroelectric infrastructure that makes large-scale Bitcoin mining possible.
Read more: Liquid Bitcoin Hashrate Protocol: A Guide to Mining Bitcoin With NFTs
Since the 1930s, the Tennessee Valley Authority (TVA) has maintained a formidable hydroelectric power grid in the region. Therefore, the area has comparatively few coal-based power plants. This makes East Tennessee particularly attractive to a firm like CleanSpark, which prides itself on low emissions.
As Bradford himself put it, “Tennessee has a similar political and energy environment to Georgia, where we’ve deployed nearly $1 billion of capital and operate nearly 500 MW.” The investment, in other words, could be a first step. If CleanSpark’s new facilities are a success, it may lead to further intensification of crypto mining infrastructure in the region.
Bitcoin Mining Difficulty
However, several obstacles exist between CleanSpark and a long-term infrastructure construction project. As Bradford mentioned, this purchase was timed to close a deal when the asking price was the lowest.
New data suggests that mining difficulty is at an all-time high, which is concerning next to Bitcoin’s price drops. When mining difficulty is high, it usually means there are more miners competing, which increases the energy and resources needed to mine new blocks. If the price of Bitcoin drops during this time, it can become less profitable for miners.
This creates concern because miners might struggle to cover operational costs, especially if they rely heavily on Bitcoin’s value for their revenue. In some cases, sustained high difficulty and low Bitcoin prices can lead to miners shutting down operations, which aligns with what investment bank Jefferies said in a research report.
“September is shaping up to be another difficult month as BTC remains below $60K and the network hashrate continues to climb,” analysts at Jefferies wrote.
These broader economic downturns coincide with a difficult moment for CleanSpark itself. The company’s stock valuation has been on a steady decline and may be crossing critical thresholds. Specifically, CleanSpark’s short-term moving average has nearly descended past its long-term moving average, a so-called “death cross” suggesting a long-term decline.
Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks After 2024 Halving
These price moves may shake investor confidence in the context of increasing hardship for the entire industry.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
Trump and Lummis Unite on $76 Billion National Bitcoin Reserve
Senator Cynthia Lummis is making a bold new proposal to establish a Bitcoin reserve in the US. This follows President-elect Donald Trump’s recent declarations in the run-up to the US elections.
Her bill, the BITCOIN Act of 2024, aims to have the US Treasury acquire 1 million Bitcoin (BTC) over five years, a massive move that would position the US as a leader in financial innovation.
Senator Cynthia Lummis Advocates Bitcoin Reserve
The Wyoming senator wants the plan spread across five years, with purchases of 200,000 BTC tokens every year to develop America’s Bitcoin reserve. At current rates, that translates to an investment of about $76 billion.
“We are going to build a strategic Bitcoin reserve,” Lummis shared on X (formerly Twitter).
Notably, Lummis’s side of the political divide now holds the majority in both the Senate and House committees. According to Stand With Crypto, 261 pro-crypto candidates have been elected to the House of Representatives against 116 anti-crypto candidates. On the other hand, there are 17 pro-crypto candidates in the Senate and 12 anti-crypto lawmakers.
Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know
With this, the chances of Senator Lummis’ Bitcoin Bill passing through Congress are far better. This is as opposed to the Biden administration, where efforts toward bipartisan bills were greatly stifled due to a divided Congress.
This political alignment, along with Bitcoin’s recent surge to a new all-time high, adds momentum to Lummis’ initiative. Industry leaders, including Michael Saylor of MicroStrategy and Samson Mow, have shown support, stressing Bitcoin’s potential as a national asset.
Mow highlighted Bitcoin’s value at sub-$100,000, pointing out its potential strategic importance if prices soar above $500,000 in coming years.
“Good luck Senator Lummis. I suggest acting quickly. The difference between acquiring Bitcoin below $0.1 million vs. $0.5 million will have massive geopolitical ramifications,” Mow wrote.
Framework for Secure BTC Management
The BITCOIN Act does not stop at Bitcoin acquisition. It also introduces a framework for managing Bitcoin securely within Treasury vaults. It aims to reduce national debt by half by 2045. This would serve as a hedge against inflation and a potential powerhouse for US debt management.
President-elect Trump publicly endorsed the creation of a national Bitcoin reserve during the Bitcoin 2024 conference in Nashville. His remarks continue to stir interest among crypto proponents and Republicans as the then-presidential aspirant emphasized Bitcoin as a “core of financial independence” for the US.
“It will be the policy of my administration…to keep 100% of all the Bitcoin the US government currently holds or acquires into the future. This will serve in effect as the core of the strategic national bitcoin stockpile…It’s been taken away from you,” Trump said.
Meanwhile, state governments are also eyeing Bitcoin, with Florida’s Chief Financial Officer Jimmy Patronis recently endorsing Bitcoin as a “strategic reserve” for state pensions. Florida’s pension fund, among other states like Wisconsin and Michigan, would benefit from Bitcoin’s long-term appreciation, diversifying investments amid economic uncertainty.
Nevertheless, while the plan has garnered support, it raises questions about economic risks and global impacts. Some economists warn of potential volatility in tying national debt management to cryptocurrency. However, advocates point to Bitcoin’s finite supply and growing international adoption as a hedge against inflation and market fluctuations.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
With Trump’s support, a Republican-led Congress, and growing state-level backing, the plan has momentum. This makes the concept of a national Bitcoin reserve a closer reality than ever before. If implemented, the BITCOIN Act could place the US at the forefront of a global financial evolution.
“Other countries will follow,” another popular user on X added.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
Bitcoin Price Might Never Dip Below $70,000 Again After The US Elections, Here’s Why
The US presidential elections have come and gone, and the only thing left is the results. Interestingly, a snapshot of the Bitcoin price during the elections showed Bitcoin trading just above $70,000. This is a notable price to follow, as history shows this might be the price support for Bitcoin in the foreseeable future. Interestingly, this phenomenon goes back to the Bitcoin price levels in previous US elections.
Why Bitcoin Price Might Never Dip Below $70,000 Again
Bitcoin has largely been on an uptrend since Monday, when it kicked off a run after it rebounded to the upside from $67,000. This run continued, allowing the Bitcoin average price during the 2024 presidential elections to be around $70,110.
Historically, U.S. election cycles have often been accompanied by shifts in Bitcoin’s value, marking crucial price points that tend to establish longer-term support levels.
To understand this trend, we need to look at the past four election cycles. Back in 2012, during the early days of the crypto industry, the Bitcoin price traded at a modest $10 on the US presidential election day, a price point that now seems almost unimaginable. By 2016, Bitcoin’s election-day price had climbed to $710, setting a new baseline that it has never revisited since.
The most interesting one was what happened after the 2020 US presidential election, when the Bitcoin price was trading around $13,555. The Bitcoin price has never revisited this price point again since then up until the time of writing. What’s more interesting is that this price point even served as the lowest support level during the 2022 bear market price crash.
If these historical trends are any indication, the 2024 election-day price of $70,110 could become a similar stronghold and a price floor for Bitcoin in the coming years. This level might even serve as critical support should a bear market eventually take hold at any point.
What’s Next For The Bitcoin Price?
As of now, Bitcoin is trading above $73,200 after experiencing an intense surge over the past 24 hours. This remarkable rally saw Bitcoin climb nearly 10% within a single day, reaching an intraday high of $75,358. This milestone has now become Bitcoin’s highest trading level, as it broke past its previous all-time high of $73,737 in March 2024.
Although the Bitcoin price has pulled back slightly likely due to some investors cashing in on recent profits, the rally is expected to resume anytime from now. Considering this momentum, Bitcoin remains well-positioned to challenge the $80,000 mark before the end of November, especially if buying interest continues to drive the current uptrend.
Featured image created with Dall.E, chart from Tradingview.com
Bitcoin
Bitcoin Price After US Presidential Elections: Here’s How BTC Reacted To Previous Winners
Market analysts have continued to deliberate on how the Bitcoin price could react to a Donald Trump or Kamala Harris victory in the US presidential elections. History indicates that Bitcoin’s future trajectory is bullish, irrespective of who wins the elections.
How The Bitcoin Price Has Reacted To Previous Winners
The Bitcoin price has always hit a new all-time high (ATH) regardless of the winners in the past US presidential elections. In 2012, after Barack Obama won the elections, Bitcoin rallied and reached a new ATH of $1,200 in 2013. Its price then consolidated until the next election in 2016.
The 2016 US presidential elections, which Donald Trump won, also sparked the beginning of another impressive rally for the Bitcoin price, which rose to a new ATH of $19,000 the following year. In 2020, following Joe Biden’s victory in the US presidential election, BTC rose to a new ATH of $69,000.
The Bitcoin price rally after the US presidential elections is believed to be due to the market certainty that the election aftermath provides. Meanwhile, based on history, the BTC rally could begin as soon as December, with the flagship crypto hitting a new ATH as soon as January 2024.
In 2016, the Bitcoin price rally began about three weeks before the election and went on to hit a new high in the first week of January 2017. In 2020, BTC had also consolidated for about six months before it began to rally from $11,000 just about three weeks before the US elections and then went on to reach a new high of $42,000 in January 2021.
Bitcoin’s recent price action also looks to be playing out the same way as BTC began rallying in mid-October and even came close to hitting its current ATH of $73,700 late last month. As such, there is the possibility that the flagship crypto could again retest this ATH and surpass it as soon as January 2024 or even before then.
There Could Be Some Volatility In The Coming Days
In an X post, Crypto analyst Ali Martinez warned that the days following the last three US presidential elections have been volatile for the Bitcoin price. However, he added that the overall trend has stayed upward.
Economist and crypto analyst Alex Krüger also warned about the potential pullback the Bitcoin price could face after the US elections. He claimed that there is a 45% chance that BTC could drop to as low as $65,000 if Kamala Harris wins the elections.
Due to his pro-crypto stance, Donald Trump looks to be the most preferred candidate in the crypto community. As such, the market could initially react negatively to a Harris win while taking in Trump’s loss.
At the time of writing, the Bitcoin price is trading at around $68,000, down in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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