resultThe collapse in the cryptocurrency market, bitcoin It also created big problems for the miners. The miners, who did not want to experience greater losses, could not find a solution other than selling their assets. This picture created a great selling pressure in BTC.
Glassnode commented that it is under great ‘financial stress’ due to the problems experienced in the industry. Made by Glassnode and CryptoSlate in the studydistributes 135% of miners’ mined Bitcoin assets.
A value above 100 means that miners are selling more coins than they have recently mined. As a matter of fact, according to the data, Bitcoin miners also sell the assets in their treasury. Miners selling their reserves are trying to cover the costs in their mining operations.
The use of reserves represents a critical detail that could create a new crisis in the sector. If sales continue, the bear market could escalate and ultimately trigger more liquidations in the mining industry.
In our latest report with @CryptoSlatewe analyze the #Bitcoin mining sector, and how the industry is under immense financial stress
What we find is that $BTC miners are distributing around 135% of mined coins
This means miners are dipping into their 78k $BTC strong treasuries https://t.co/cRuHUVRsjt pic.twitter.com/fvso2v6Lkr
— glassnode (@glassnode) November 28, 2022
The hashrate or digging difficulty in Bitcoin mining is a system in which only those who can remain strong continue, as well as ensuring the continuation of the process. Losing more miners could trigger deeper problems in the market.
However, the pain for miners is likely to result in relief for the cryptocurrency market. Given the current dynamic, miners are putting tremendous pressure on Bitcoin and the rest of the market respectively.
During the mining crisis and crypto crackdown in China, the BTC network saw the largest mining difficulty drop in its history. This later became the basis for the massive rally that drove BTC to the $69,000 price level.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.