Bitcoin, the largest cryptocurrency started a fresh increase from the $28,500 support zone against the US Dollar. At press time, the token crossed the $30k mark as it witnessed a 3% surge in the past 24 hours. But there’s a potential for more. BTC could rally if there is a clear move above the $30,600 resistance zone.
What’s driving BTC now…
Different factors, for instance, institutional adoption, have aided the largest crypto to reach new heights within the crypto market. However, energy companies might be next to drive the next BTC bull run. Ki Young Ju, CEO of analysis platform CryptoQuant, in a series of tweets shared this narrative. In his opinion, energy companies will drive the next BTC bull run alongside traditional finance institutions.
“The first change we’ll see is that the BTC network will be run by solar and wind which became the most cost-effective electricity source lately.”
Here’s a graphical representation of how this might play out:
In fact, the U.S Energy Information Administration’s statistics highlighted that the largest increases in U.S electric power generation for summer 2022 will come from solar and wind. As per the executive, ‘Hydroelectric energy is the most common source for Bitcoin mining globally. It gets used by 62% of crypto miners. Solar and wind take 15-17% for now.’
Hydroelectric energy is the most common source for Bitcoin mining globally, and it gets used by 62% of crypto miners. Solar and wind take 15-17% for now.
— Ki Young Ju (@ki_young_ju) May 23, 2022
Over the years, the Bitcoin mining industry has become more transparent, more sustainable, and better understood. One of the reasons is the sheer support. Blockstream and Jack Dorsey’s Block, formerly known as Square, incorporated a solar- and battery-powered bitcoin mine in Texas that used solar and storage technology from Tesla. Such collaborations could help BTC reach new heights.
“… By collaborating on this full-stack, 100% solar-powered bitcoin mining project with Blockstream using solar and storage technology from Tesla”
Well, price volatility is part of such heights. Consider this, BTC has dropped around 56% since Nov 2021 BUT at the same time, hashrate increased by 75%.
Looking at the graph above, Ki Young Ju declared- “The market is cold, but the fundamentals are full of heat from mining rigs.”
Bitcoin HODLers did bear the storm as they continue to hold the flagship coin. For instance, the number of addresses holding 0.1+ coins reached an ATH.
— glassnode alerts (@glassnodealerts) May 23, 2022