Big BTC Mining Pool Stops Payments – Impending Insolvency By

© Reuters

By Marco Oehr – The turmoil in the cryptocurrency markets seems to have no end, and this time even bitcoin itself has been affected. Following the collapse of TerraUSD, which dragged some other well-known projects into the abyss, a large BTC mining pool announced that withdrawals will be temporarily suspended. Those reports over the last few months usually mean this is the beginning of the end.

The Beijing-based mining pool Poolin covers 6.8% of the total hash rate of the Bitcoin network, making it a systemically important part of the blockchain.

The operator has announced that withdrawals from PoolinWallet will be temporarily suspended, which is directly related to liquidity issues.

If miners immediately stopped working, the situation would become even worse. You wouldn’t blame them, because mining costs continue.

Poolin tried to calm down and promised that a viable solution would be found within a week. Furthermore, it is anticipated that there will be no fees for mining Bitcoin and in the period from September 8th to December 7th. For larger miners whose balance is at least 1 BTC or 5 , this offer must be valid for up to one year.

It remains to be seen whether this will be enough to prevent mining operations from being discontinued. In the past, Poolin has also worked with Three Arrows Capital and BlockFi in various areas. Two companies that are now officially insolvent.

If the mining pool faces a similar fate, it could trigger a new shock wave in the cryptocurrency market.

Bitcoin technical prices

Bitcoin is down 0.52% today at a rate of $19,756. As such, the cryptocurrency remains within its sideways range, which is limited on the upside by resistance at the 61.8% Fibo retracement of $20,523 and on the downside by the Aug 28 low of $19,542.

For dynamic price development in one of the two directions, it is necessary to achieve a sustained breakout of this range.

Bitcoin daily chart

If the 61.8% Fibo retracement is breached, the focus will shift to the 50% Fibo retracement at $21,417 followed by the 38.2% Fibo retracement at 22,311.

Below the low of the 28th of August, the 78.6% Fibona retracement is located at $19,251 as immediate support. If the bulls fail to defend this in the longer term, a test of the cycle low of $17,630 should be expected.

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