This is a common occurrence among miners and BTC holders, and it is not worth celebrating

The cryptocurrency market, for what seems like forever, It was in a bear market, with prices constantly hitting new lows. also Bitcoin [BTC]Which controls the majority of the cryptocurrency market, has been hit, and it appears that long-term bitcoin holders are bearing the brunt.

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Here AMBCryptos Bitcoin (BTC) Price Prediction For 2022-23

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According to the statistics of data intelligence platform Glassnode Short-term BTC holders fared better than long-term BTC holders. Glassnode also contains I noticed Network difficulty increased, making BTC more difficult to mine.

It’s a southbound road

BTC price has seen a steady decline, as can be seen from the chart. Price range analysis revealed a decline of nearly 60% in the asset’s value between April and September 2022. After peaking in the $45,000-$48,000 range in April, it has fallen to the $18,000-19,000 range at press time.

Source: TradingView

With a current tick of -40.47% on the 365-day Market Capitalization Index of Realized Value (MVRV), it was clear that long-term BTC holders were not profitable on October 11th. This finding also indicates that investors who decided to cash out at that point would have lost over 40%.

Source: feeling

There was a significant discrepancy between the 30-day MVRV and the 365-day MVRV profile of holder profitability. In contrast, the MVRV for the past 30 days was -1.05%, indicating a slight decrease. Investors will incur less than a 2% loss and decide to sell in the current MVRV stage.

Source: feeling

Bitcoin raises the temperature

The recent bear market has not been kind to bitcoin miners either. An increase in the difficulty of the mining network has been reported along with the hash rate. according to data From Blockchain.com, the current total hash rate is 257.225 million, the highest in over a year.

Furthermore it, Network difficulties It has been rising since September and appears to have reached a new peak recently at 33,739 tons. Despite the increased network difficulty and fragmentation ratio, miners income It seems to be going in the opposite direction.

It seemed as if miners’ earnings had been sideways lately, but in fact they had been steadily declining over the months. Current revenue was $20.4 million, well below the $50 million projected at the start of the year.

What these two entities, the miners and warehouses, have in common is the risk of selling. In the face of continued decline, some long-term investors may decide to sell their holdings to reduce losses. In addition, short-term traders can also sell to limit their losses in case the market continues to decline.

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