Data tracked by Glassnode is held in miner wallets. Bitcoin (BTC) It shows that the number of people has dropped to the lowest level of the last 10 months.
While FTX’s Collapse Hits Crypto, It Destabilizes Bitcoin (BTC) Miners
Bitcoin (BTC) miners or cryptocurrency Organizations that produce the currency appear to be depleting their stocks of cryptocurrencies amid the market panic stemming from FTX.
Balance held in miner wallets over the past seven days, according to data tracked by blockchain analysis firm Glassnode. 9,402 BTC decreased to the lowest level in ten months. 1.826 million BTC’to ($30.6 billion).
Bitcoin miners solve complex algorithmic problems to mine blocks and verify transactions in exchange for rewards paid in BTC.
In other words, the profitability of miners largely depends on the price of the cryptocurrency. For this reason, miners tend to dissolve their holdings in order to survive in a bleak market.
BTC fell 22% in the seven days to November 13, its biggest drop since June as the collapse of Sam Bankman Fried’s FTX stock market eroded investor confidence.
“BTC mining companies have struggled this year as the drop in the price of the largest cryptocurrency and rising energy prices (and operating costs) has led to a drop in revenue.
As a result, mining firms have sold their core assets heavily, resulting in significant net outflows over the past six months.
Charles Edwards, CEO of asset manager Capriole, tweeted recently, “BTC’s electricity cost has been exceeded for the 2nd time in just 5 years.
The average miner’s electricity bill is now more than his income.”
“Many BTC miners are now shutting down their machines,” Edwards added.
*Not investment advice.
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