Bitcoin (BTC) experienced a rise in price on June 21, reaching a 14-day high of $28,103. This increase comes amidst recent negative news surrounding regulatory actions against Binance and Coinbase by the SEC. However, bullish traders remain hopeful that BTC can break its 10-week losing streak.
The main factor driving this rally appears to be the growing institutional interest in Bitcoin. Notably, BlackRock and Fidelity Investments have recently filed for a spot Bitcoin ETF, indicating their confidence in the cryptocurrency. BTC currently finds support around $28,450, with resistance levels at $29,000 and subsequently $30,000.
Several optimistic factors, such as a weakening dollar index and the implementation of inflation-tackling measures in the U.S., have contributed to positive sentiment. As a result, the entire cryptocurrency market, including BTC and ETH, is showing slight signs of recovery.
What does this mean for Crypto mining?
With Bitcoin stabilizing or potentially surpassing the $30,000 mark, there will be a significant surge in demand for crypto mining, both from institutional and retail sectors. However, meeting this increased demand for miners and colocation space poses a challenge and is likely to drive up the prices of reliable and readily available facilities.
Currently, the lead time for small-scale facilities ranges from 1 to 2 months. Clients are typically required to make a deposit for this period and, in some cases, contribute to the initial investment or installation fees through Capex.
Anticipating the hardware prices to rise in the coming week, the availability of colocation spaces will be the main driver for hardware sales. Companies that have already invested in infrastructure have gained control over the situation and appear to have made wise investments.
If you are seeking colocation services, we invite you to join our waiting list to secure your spot or buy miners plus hosting.
