Analysts do not rule out that the digital currencies will continue to collapse in the coming months, and that the price of the leading currency “Bitcoin” will collapse to 12 thousand dollars.
The great collapse of cryptocurrencies has raised the question of whether digital currencies will be a graveyard for the fortunes that have poured in over the past decade, and have turned many of their investors into millionaires overnight, and they are now heading to turn them into poor people, perhaps just as quickly.
Regarding the crash, crypto market analyst Cantring Clark told the Bitcoin Telegraph that the price of Bitcoin could collapse to $12,000 before it can climb.
For their part, analysts at the US investment bank “JP Morgan” said that the price of Bitcoin, the most popular among digital currencies, may fall to 13 thousand dollars.
Bitcoin was traded at less than $16,000 for the first time, compared to $18,000 on Wednesday, according to data from cryptocurrency website Coinbase.
Cryptocurrency mining companies are facing high electricity prices to operate the huge computers that are used to produce cryptocurrencies.
Experts estimate that the cost of electricity to produce a unit of Bitcoin amounts to about 15 thousand dollars, which may lead to the suspension of many mining companies, if the price of the currency falls to the level of 12 thousand dollars.
The “CryptoQuant” company had alarmed investors in digital currencies with expectations, released on Thursday, that some digital currency miners may face bankruptcy due to high costs and a decline in cryptocurrency prices, according to the Coin Telegraph website, which specializes in digital currencies.
The analysis indicated that cryptocurrency mining operations are gradually decreasing due to the high costs and the disruption of some mining companies or their sale to cover expenses. Coin Telegraph analysis indicates that some mining companies listed on the Nasdaq stock exchange may not be able to pay their debts this year. If they go bankrupt, they will have no choice but to hold their bitcoin wallets.