Hello again and welcome to this week's edition of Overbit News. Starting off the week was a red Monday for cryptocurrency markets, a stark departure from last week's edition where we kicked off the issue with news of Bitcoin making yet another all-time high.
Despite this down day to start off the week, Bitcoin continues to pile up more bullish fundamentals. According to Bloomberg's new report, Bitcoin's ongoing rally is statistically less volatile than it was at the end of 2017. Despite BTCUSD going from $4,000 to $40,000 in a year, the price swings are still measurably smaller on a 60-day moving average than they were in 2017.
Major investors and institutions are indeed warming up to Bitcoin because of its decreasing volatility (and may even be the cause of it). News just broke of two more firms with their eyes on Bitcoin - this time JPMorgan and Morgan Stanley - according to Business Insider. With volatility being one of the main argument points from critics, it decreasing would certainly explain some of the massive names we've seen jumping into or considering the Bitcoin markets as a legitimate asset.
As major banks and institutions start to believe in Bitcoin, the industry that believed in Bitcoin the most, Bitcoin Miners, just posted Record-Breaking Revenue. Bitcoin miners mined quite a lot of Bitcoin last week, $354M in revenue to be exact. This is a startling number, and only previously eclipsed in the record-setting month of December 2017.
CoinTelegraph caught up with Ethan Vera, co-founder of Seattle-based mining company Luxor Technology, who stated that "Despite decreasing block reward, mining revenue on a USD basis has trended upwards,".
The mid-December 2017 mining record of $340 million, was near the peak of Bitcoin's prior bullish market cycle top. It can't be said for sure if we are near the top of this cycle, but Vera went on to state "This is encouraging for the long-term prospects of Bitcoin's security and continued investments over the next few halving."
People are starting to ask "Where is all this mining revenue going?" Vera stated that "most of them are taking all of their profits and reinvesting it back into their business to grow future hash rate.". While Retail and Institutions are bullish on Bitcoin, "miners are incredibly bullish on the future of mining," Vera told CoinDesk.
The last big mining firm who tried for an IPO, Bitmain, had issues leading up to its public share, but just recently in January Jihan Wu, former CEO of Bitmain, stated he was stepping down.
Savvy investors would be keen to continue to watch top mining firms' behaviour during this bull run and adjust accordingly. That's it for today's edition of Overbit.com News, where we cover the top stories of the week, and this week is the future of Bitcoin.