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Bitcoin Mining Council unveils details, confirms Elon Musk has ‘no role’

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The Bitcoin Mining Council made a formal debut on Thursday as the debate regarding the environmental impact of the digital asset intensifies.

The Bitcoin Mining Council describes itself as a “voluntary and open forum of Bitcoin miners committed to the network and its core principles”. Its mandate is to promote transparency, endorse good practices, and foster Bitcoin education according to the official website.

MicroStrategy CEO Michael Saylor is one of the founding members who posted a call to arms on his Twitter feed on June 10.

The organization consists of a group of energy-conscious North American Bitcoin mining companies. It was first suggested by Elon Musk in a Tweet in late May, but he has since clarified that he will have no role at the Council. The site goes out of its way to underline this point:

“Elon Musk has no role at the BMC. The extent of his involvement was joining an educational call with a group of North American companies to discuss Bitcoin mining.”

In addition to MicroStrategy, founding members include investment management firm Galaxy Digital, blockchain mining company Argo, blockchain technology firm Hive, and Bitcoin mining company Riot. The founding members will cover any running costs and have invited any Bitcoin miner from anywhere around the world to join. It stated that any miner joining should:

“Believe that transparency around energy usage for mining is important and agree to voluntarily share their energy mix and hashrate size for research and educational purposes.”

The BMC will hold quarterly meetings in order to analyze mining trends, partner with industry researchers, gather data for educational purposes, and foster growth in the North American BTC mining industry.

The group confirmed that it is completely independent of the Bitcoin network itself and has no intentions to disrupt its decentralization.

“We don’t seek to change the decentralized nature of Bitcoin or its core principles, but rather are working to raise awareness about Bitcoin and Bitcoin mining.”

It added that the Council believes that Bitcoin’s energy usage is a feature, not a bug, providing tremendous network security. The energy consumption of global mining operations has come under the spotlight recently in the wake of Elon Musk’s comments regarding its environmental impact.

The Cambridge Bitcoin Electricity Consumption Index (CBECI) estimates Bitcoin’s annual electricity consumption is currently somewhere between that of Holland and the UAE.

Following recent state clampdowns, China’s hashrate dominance is dwindling while America’s is increasing as mining operations can tap into cheap renewable energy in states such as Texas.

More firms are setting up operations in the U.S., attracted by this abundance of renewable energy. The latest collaboration between mining software company Luxor and institutional Bitcoin technology and financial services firm NYDIG aims to foster growth in the rapidly expanding industry.

However, one of the biggest winners for geographical reasons is neighboring Kazakhstan.





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Bitcoin price falls after Fed shifts interest rate hikes forward amid inflation fears

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Bitcoin dropped closer to a key support level and the Dow and the S&P 500 pulled back after the Federal Reserve moved forward its plan for 2 interest rate hikes in 2023.

Bitcoin (BTC) price extended its losses shortly after Federal Reserve Chair Jerome Powell announced that the Fed would move forward its timeline and schedule two interest rate hikes in 2023.

Bitcoin price was already seeing weakness in the early trading hours after losing the $40,000 level to mark an intra-day low at $38,300. The Dow and S&P 500 also pulled back 0.77% and 0.54% respectively.

Daily cryptocurrency market performance. Source: Coin360

The decision comes as economists worry about rising inflation in the United States and Powell said that the Fed had raised its inflation expectation from 2.4% to 3.4%. While Powell described the current inflation spike as “transitory”, consumer prices are at a 13 year high and analysts worry that rising inflation will impact the post-covid economic recovery.

Powell did not directly address whether, or when the Fed would begin tapering its $120 billion monthly bond purchases but the decision to begin raising rates in 2023 suggests that the program will see cuts way in advance of 2023 in order to be carried out in a moderate fashion.

Can Bitcoin price maintain its current range?

BTC/USDT daily chart. Source: TradingView

On June 15 Bitcoin price successfully completed its bullish inverse head and shoulders pattern (4-hour chart), but fell short of the $45,500 target after hitting resistance at $41,350.

While the price has slipped below $40,000 and failed to flip the level to support, analysts are viewing the current price action as nothing more than range-bound trading and at the time of writing, $38,300 looks like a lower support retest.

With less than 3 hours before the daily close, traders will likely look for BTC to hold above the 20-day moving average near the $37,000 level which is expected to function as support.

One thing to note is the steady inflow of BTC to major exchanges and an increase in miner outflows over the past few days as data from CryptoQuant suggests that Bitcoin inflows lead to bearish outcomes.

The 50- and 200-day moving averages are also enroute to converge, possibly forming a bearish ‘death cross’, but both are lagging indicators, meaning they are not entirely reflective of spot price action. Nevertheless, both moving averages could present considerable resistance for bulls.

A dip below the $37,000 to $36,000 range where many traders on crypto-Twitter have announced they have bids would likely take BTC price to the lower end of its current range in the $35,000 to $31,000 zone.