It appears as if mining has become once more a profitable business, given the recent gains earned by Bitmain, which appear to coincide with Bitcoin’s breakout of one of the most relevant technical indicators.
According to a report from crypto news site 8BTC, the holdings of the Beijing-based Bitmain firm amounted up to 6,000 BTC and 750,000 BCH, which would have had a market value of about $130 million, being about 90% down from their prices only one year ago. The report sources those amounts from this tweet:
BREAKING: The insider just wechat Bitmain’s latest crypto holdings are 6k in BTC and 750k in BCH. Thats around $130 mln in total value and almost 90 prc down from a year ago !! Also Bitmain had to liquidate some 500k BCH over Q3 and Q4 to cover losses. No wonder BCH has tanked😱
— BTCKING555 (@btcking555) February 19, 2019
Interestingly, after the BitMain assets became of public domain, VC investor and crypto personality Alistair Milne considered that the company could have very well been behind the sellout which helped to push Bitcoin below $6,000 back at the end of 2018:
Looks like they dumped 16k BTC as well … combined, its probably why $6000 broke
— Alistair Milne (@alistairmilne) February 19, 2019
The latest gains must have been very much welcomed by Bitmain, given that the firm had to give up on some of their expansion plans, for example in Norway, mostly due to the lack of profit from their operations.
The increase in Bitcoin’s price which has benefited Bitmain and all other holders so much has now just accomplished another milestone, namely the reversal of the “death cross” pattern.
That happened when on Tuesday, the currently ongoing bull run managed to pull Bitcoin’s price above all three major moving averages (50, 100 and 200-day MA’s). The 50 days level was broken back during January of 2019, and the 100-day MA broke only about a month later, seeing this week the confirmation of the 200-day MA.
The last time that Bitcoin traded above all three of the most relevant MA’s, was on the 13th of January of 2018.
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