Cryptocurrency Market sees drop amid high energy consumption of Bitcoin mining

(MENAFN) On Monday, May 20, 2024, the cryptocurrency market witnessed a collective drop in the prices of digital currencies, with Bitcoin experiencing a slight decline. This downturn in prices comes amidst a noticeable rise in the Bitcoin Mining Energy Consumption Index, a metric provided by Global Commodities Insights. This index has seen a significant increase following its previous decline, indicating a surge in the energy consumption associated with Bitcoin mining activities.

The rise in this index reflects heightened activity among computers involved in mining CryptoCurrencies and executing transactions on the blockchain network, as measured by the Hashrate Index. This increase in mining activity demonstrates a substantial level of engagement from investors looking to mine cryptocurrencies, offering insights into the broader activity levels within the crypto market and assisting investors in estimating future market movements.

Specifically, Bitcoin's price fell by 0.72 percent during the day's trading, bringing it to USD66,683. This decline also led to a drop in Bitcoin's market value, which decreased to USD1.31 trillion, while the trading volume over the past 24 hours fell to USD20.55 billion. Other major cryptocurrencies also saw declines in their prices. Ethereum (ETH) dropped by 1.33 percent, reaching a price of USD3,088.

Similarly, Binance Coin (BNB) experienced a 0.90 percent decrease, bringing its price down to USD576. Cardano (ADA) saw a more significant decline of 2.26 percent, with its price falling to USD0.4712. Ripple (XRP) fell by 1.71 percent to USD0.5133, and Dogecoin (DOGE) saw a decrease of 2.93 percent, bringing its price to USD0.151179. These movements reflect a broader trend in the market, where fluctuations in energy consumption and mining activities are closely linked with changes in cryptocurrency prices and investor behavior.



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