It has been in a downtrend since its $31,000 ATH in April. bitcoin has been consolidating in a narrow range for a long time.
Crypto services provider that handles the price of BTC and the status of miners Matrixport‘s analysts stated that miners have had a hard time liquidating the new BTCs they mined as the margin in the Bitcoin price has narrowed in recent weeks.
BTC Analysts, who stated that the price was experiencing selling pressure at the level of $ 28,000, wrote that miners may be responsible for this.
“We suspect that Bitcoin miners have been forced to liquidate the new BTC they have produced due to the drop in profit margins in recent weeks.
Because of the continuous increase in Bitcoin mining difficulty, mining has become very competitive and often unprofitable. Mining difficulty, a measure of how easily miners can discover a new bitcoin block, has recently reached an all-time high.
In this context, most Bitcoins produced before 2022 seem unprofitable, given the current BTC mining cost and potential revenue prospects on the miners front.
At this point, this means that miners are forced to sell at the current level instead of holding their stock until BTC prices rise.
There is now a significant upward convexity for miners as profitability could quadruple if Bitcoin prices increase by 10% plus.”
*Not investment advice.
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