Bitcoin miners are selling BTC at record speed after the price slumped to two-year lows. According to the data, selling pressure from miners increased 400% in just 3 weeks.
Bitcoin miners make the most aggressive sales in years
The aggressive selling is supported by similar data from Glassnode which shows that total miner balances fell to a 10-month low this week. Miners currently hold roughly $30.4 billion worth of BTC, or almost 10% of the supply. Veteran Bitcoin researcher Charles Edwards said that miners haven’t sold this heavily since Q4 2015. “If the price doesn’t rise soon, we will see many of its miners go bankrupt,” Edwards says.
Bitcoin miners have increased their selling pressure by 400% in the past three weeks as FTX/Alameda’s bankruptcy is on the agenda. This metric has soared to levels not seen since the end of the 2015 cycle. Edwards is confident that if the price continues to drop, many miners will have to shut down. Mining companies currently rely on Bitcoin’s fixed 6.25 BTC block reward. These rewards are distributed every ten minutes. As mining becomes more difficult and network difficulty increases over time, participants turn to more economical mining resources to make a profit. This task becomes more difficult during a bear market when the Bitcoin generated by each block is significantly lower in dollar terms. cryptocoin.com We have mentioned that Core Scientific, the Bitcoin mining company listed on Nasdaq, is in this situation.
Bitcoin is moving away from ‘passive income’
Miners continue to operate at a loss amid falling BTC prices. However, both difficulty and hashrate, the two most important metrics of mining activity, set new historic highs in mid-November. BTC mining difficulty climbed above 39.98 T on Monday. The hash rate has increased to an impressive level of almost 300 EH/s. Charles Edwards reported earlier this month that Bitcoin was severely oversold according to the Energy Value Model. According to the report, Australian mining company Iris Energy announced that it is close to bankruptcy due to insufficient cash flow. The firm had to pull the plug on its facility at one point. This shows that the sector may be even more troubled in the coming weeks.
Arthur Hayes doubles his bottom predictions
Former BitMEX CEO says we will now break $10,000 from Bitcoin price. In his new analysis, he said that he is ready to buy Bitcoin at lower levels due to the potential bankruptcy of Genesis. Genesis, a subsidiary of Digital Currency Group, has announced that it may go bankrupt due to FTX’s bankruptcy. The firm is currently seeking $1 billion in bailout funds. Hayes says this news will have a negative impact on BTC.
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