8x More Profitable to Mine Bitcoin than All Other Cryptos: Report

Miners on the Bitcoin (BTC) network were paid a record $580,000 in mining fees, or rewards, during a 24-hour time period on May 10th, 2019.

This, according to data shared by Messari’s OnChainFX rankings, which revealed that bitcoin miners managed to earn over 8x the transaction fees than miners on all other major crypto networks (combined).

ETH Miners Earn $68,000 In TX Processing Fees

In second place, Ether (ETH) miners earned 88% less in transaction (TX) processing fees when compared to bitcoin miners. In total, mining Ether generated around $68,000 in TX fees on Friday (May 10th, 2019). Meanwhile, Litecoin (LTC) miners earned only $1,100 (in total) in TX fees.

The seven other cryptocurrencies tracked on the OnChainFX site, including Bitcoin Cash (BCH), Monero (XMR), Dash (DASH), XRP, Dogecoin (DOGE), Lisk (LSK) and Ethereum Classic (ETC), earned miners less than $1,500, in total, in TX fees.

More Bitcoins Traded Recently Than Ever Before

Notably, more bitcoins were traded recently (on May 12th, 2019) than any other day in the pseudonymous cryptocurrency’s history. Over $29 billion in bitcoin trading volume was recorded on May 12th. The previous high for 24-hour BTC trading volume was set on January 8th, 2018 - when the world’s most dominant cryptoasset registered more than $25.5 billion in 24-hour trades.

As cryptocurrency prices have begun to surge, it appears that the extended bear market, which lasted throughout 2018, may have come to an end.

Bitcoin Will Account For “A 5% Market Share Of The Earth”

According to legendary billionaire venture capitalist, Tim Draper, Bitcoin will represent around “a 5% market share of the Earth.” Draper, whose comments came during the SALT Conference, held recently in Las Vegas, Nevada, believes that Bitcoin will be far more valuable than it is today. This, as the cryptocurrency is “decentralized, open, [and] transparent” - which makes it a “better currency” than all other fiat currencies, according to Draper.

On May 10th, the Canaccord Genuity Group, a Toronto-based multinational, full-service investment bank focused on “growth companies,” predicted in its report that the price of bitcoin will surge to $20,000 by 2021.

The firm’s report was based on bitcoin’s price movements during the four-year time period from 2011-2015 and from 2015-2019. Additionally, Canaccord’s report took into account the halving of bitcoin mining rewards (every 4 years), which could potentially affect the cryptocurrency’s price.

Bullish Bitcoin Investors Are Ignoring Institutional Bears

Neil Dennis

Bitcoin investors remained positive this week, despite data showing that bearish bets on the futures market had increased during the previous week.

Positioning data on CME Bitcoin futures showed that institutional managers held 14% more short positions in the seven days to Friday, June 21, than in the week before, according to the Commodity Futures Trading Commission (CFTC).

Futures trade allows investors to back an asset's losses as well as gains: short positioning means backing an asset to fall in price over a defined period.  The increase in the CFTC short position data on CME Bitcoin futures, therefore, would indicate growing bearishness by the larger institutional players.

Playing it by the Charts

They may have been playing it by the charts. The previous two tops occured in mid-May when the price of Bitcoin reached a high of $8,352 before falling back nearly $1,000, and then at the very end of May reaching $9,066 before falling back to $7,807.

Bitcoin's price performnace

The chart shows that in the week to June 21, when shorts on CME Bitcoin futures grew, Bitcoin pushed up above $10,000, in a chart pattern that might have led many to believe another pullback was imminent.

This drop, predicted by many institutional investors, never came, however, and private investors continued to back the Bitcoin rally. Indeed, the CFTC report showed that smaller investors continued to hold more long positions - backing the continued rally: investors with fewer than 25 Bitcoin futures contracts showed four times as many long positions than shorts.

Short Covering

This may help explain how the rally of the last couple of weeks gained momentum, as those on the institutional side joined the buying to cover their short positions.

Tanya Abrosimova, analyst for FXStreet, said:

Many experts believe that at this stage Bitcoin is driven by FOMO (fear of missing out), while the market repeats the situation of late 2017.

It is also likely that Facebook's announcement about the lauch of its Libra cryptocurrency caught the institutional shorts on the wrong side of the market. Since the Libra announcement on Tuesday, June 18, Bitcoin has gained more than 30%.

Abrosimova added:

Looking technically, Bitcoin has been growing strongly for eight days in succession, which is the longest period of uninterrupted growth since December 2017. As BTC/USD is trying to take out a new barrier at $12,500. Once it is out of the way, the next bullish target of $13,000 will quickly come into view.