Bitcoin: MicroStrategy Pushes for “Bitcoin Standard” as Miners Face Challenges and Market Fluctuations

Michael Saylor, the chairman of MicroStrategy, continues to be a vocal proponent of Bitcoin. He’s urging miners to adopt the “Bitcoin Standard,” a concept that encourages them to hold onto their Bitcoin instead of converting it to traditional fiat currencies. Saylor believes this strategy will not only boost miner profitability but also solidify Bitcoin’s position as a global reserve currency, similar to gold in the past.

This approach comes at a time when Bitcoin mining difficulty is at an all-time high. While this reflects growing network security, it also signifies rising operational costs for miners. Saylor suggests that the Bitcoin Standard can help offset these expenses by providing alternative income streams through cloud mining and Bitcoin-based financial products. Additionally, it would grant miners greater autonomy by reducing reliance on traditional financial systems.

Bitcoin Hashrate Emerges as a Tradable Asset

The economic realities of Bitcoin mining are pushing the hashrate (computing power dedicated to securing the network) into the spotlight as a distinct tradable asset class. Its features like divisibility and fungibility make it attractive to investors seeking exposure to Bitcoin mining without the need for hardware. This financialization of hashrate allows for participation through derivatives and opens doors for new investment opportunities.

Marathon Digital Hoards Bitcoin Despite Lower Share Price

Bitcoin mining company Marathon Digital recently used proceeds from a senior note offering to purchase an additional 4,144 Bitcoin, increasing their strategic reserve to over 25,000 BTC. This move reflects their belief in Bitcoin’s long-term value as a “premier strategic treasury asset.” However, Marathon’s share price has fallen nearly 34% year-to-date, likely due to lower-than-expected earnings and declining profitability in the post-halving mining environment.

Bitcoin Price Faces Headwinds with Reduced Institutional Interest

Bitcoin’s recent price dip below $60,000 is potentially linked to a halt in institutional stablecoin buying. Stablecoins, often used as an on-ramp for fiat currency into crypto, have seen a decrease in inflows to exchanges, suggesting a temporary lack of institutional appetite for Bitcoin. Analysts believe a return of significant stablecoin inflows could push the price back above the $60,000 resistance level.

BTC/USD Technical Indicators Suggest Potential for Bullish Move

Despite the recent price drop, some analysts remain optimistic about Bitcoin’s future. The current trading channel suggests room for significant price movement, and a potential rally towards $70,000 is on the table if Bitcoin can decisively overcome key resistance levels like the 50-day and 100-day Exponential Moving Averages (EMAs).