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Bitcoin struggles for stability, facing 10% drop for the week

<a href="">Barbara Kollmeyer</a>

Bitcoin mining just not that profitable, says Fundstrat’s Thomas Lee

Getty ImagesThis May 1, 2014 photo taken in Washington, DC shows bitcoin medals. AFP PHOTO / Karen BLEIER / AFP PHOTO (Photo credit should read /AFP/Getty Images)DMAMBMCMDMEMGPREVIEWZBZDZQZRZSZTZU

Bitcoin prices dipped slightly on Friday but were holding above $8,100 in a week marked by a sharp drop on concerns for tighter regulation.

From exactly a week ago, some $39 billion has been wiped off the market cap of cryptocurrencies, which stood at $325,416,080,764 on Friday, according to CoinMarketCap.

A single bitcoin (BTCUSD) was changing hands at $8,150.41, down 1.3%. This week, bitcoin has dropped nearly 10%, bringing it to a year-to-date loss of around 43%, as March has been a losing month for the No. 1 cryptocurrency.

Read:If this chart is correct, it puts the price of bitcoin at $91,000 by 2020

Bitcoin suffered a hefty loss on Wednesday after Alphabet’s Google said it would ban cryptocurrency-related advertising and virtual currencies were described as a “crock” at a Senate hearing earlier this week.

Among other cryptocurrencies, Ether slipped 1.6%, bitcoin cash slid 3.2% to $915.41, Litecoin fell 2.8% to $160.13, and Ripple dropped 1.6% to 69 cents.

Among bitcoin futures, the Cboe Global Markets April contract (XCBF:XBTJ8) was down 1% to $8,200, while the CME Group’s March contract (GLBX:BTCH8) fell 0.6% to $8,185.

Bitcoin mining not so profitable anymore, says analyst

With the price of bitcoin more halving its all-time high of $19,694.68 reached in mid December, fresh doubts over how profitable it is to mine cropped up.

“Bitcoin currently trades essentially at the break-even cost of mining a bitcoin, currently at $8,038 based on a mining model developed by our data science team,” said Thomas Lee, head of research at Fundstrat Global Advisors, in a report released Thursday, cited by CNBC.

In calculating that, Fundstrat looks at equipment and electricity costs, plus charges to keep facilities cool. Bitcoin mining has come under fire for the amount of global energy it consumes. According to the Bitcoin Energy Consumption Index, global energy usage of current bitcoin mining is already equal to power uptake of Denmark.

According to research conducted by Elite Fixtures, the cost of mining a bitcoin can cost as little as $531 to as much as $26,170.

Read:Here’s how much it costs to mine a single bitcoin in your country

Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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