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Bitcoin Futures, which failed to generate investor interest that some were hoping for when CME Group Inc. and CBOE Global Markets Inc. They first offered in December, find support for an improbable quarter – miners crypto-currency, according to MarketWatch. Miners use futures to hedge their best securities in the midst of rising costs of bitcoin mining.
Miners are slowly protecting themselves and reducing their exposure, said Bob Fitzsimmons, managing director and director of Wedbush Futures, a financial services company that publishes reports on cryptocurrencies.
CBOE Global Markets recorded its largest daily volume on March 26th. Contracts approach 19,000, eclipsing the 15,500 traded on Jan. 17 when investors flooded to cover their losses the day after the bitcoin plunge of 27 percent.
Operating costs increase
The amount of energy needed to operate bitcoin blocks has increased as the community approaches the maximum of 21 million bitcoins. About 17 million bitcoins have been exploited so far, according to CoinMarketcap.com.
The mining sector became very profitable when the price of bitcoin approached $ 20,000 in December. The miners started to exploit as many bitcoins as possible, even if the operating costs increased.
When the price of bitcoin dropped more than 65% below $ 6,000, mining revenues, based on rewards and fees, dropped $ 40 million a day, forcing some miners out of the market . sources of energy.
Fundstrat Advisors, a Wall Street strategy firm that publishes reports on bitcoin, has identified the breakeven point to reach a $ 8,038 bitcoin. On March 15, the bitcoin price was still below that amount.
Read also: Official: CME bitcoin futures exchange is live, the influx of 10 billion dollars expected
Bitcoin Recover revives mining
As the price of bitcoin has recovered somewhat, exceeding $ 9,000, mining activity has resumed.
Thomas Flake, founder and director of marketing at Because LLC, a Virginia-based mining facility, said the company will continue to build capacity at its two sites and that it will be "fully subscribed" until it is fully licensed. ;in September.
Increased interest in bitcoin futures also reflects a level of investor commitment to maintaining their positions, Fitzsimmons said. He noted that there was a slight rise on April 25 with people rolling rather than closing their positions.
Featured image from Shutterstock.
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