Bitcoin (BTC) miners are increasingly changing their historical strategies to hold Bitcoin when a bear market prevails. In particular, miners known to accumulate bitcoin and act as a buffer for the market are dumping their movements at an alarming rate.
In particular, at the current Bitcoin price, the Bitcoin Miner selling pressure tracker indicates unusual selling activity by miners, which is indicated in red. The rate of sales is ‘almost’ higher than it was five years ago, data provided by Capriol founder Charles Edward on November 11. Indicates.
Consequences of increased selling pressure on miners
The selling pressure of the bitcoin miner partly points to the fact of a correction in the cryptocurrency market. Notably, amid falling bitcoin prices, miners are operating in a high inflation environment with the global economy weakening. Therefore, the sales trend can be attributed to an initiative to cover operational costs such as electricity payments.
In previous years, some miners were known to hoard assets to wait for the price to rise, while others took out loans to finance operating costs. Meanwhile, miners tend to sell more when they also lose money.
While miners have developed a reputation for being optimistic even in bearish conditions; Therefore, the selling price is likely to send shock waves.
Overall, the crypto winter hit the mining industry hard, with listed companies reportedly going bankrupt, leaving them with no choice but to sell bitcoin. For example, an earlier report indicated that miners were forced to sell their equipment at a discount after they became unprofitable.
In addition, the analysts predicted that if bitcoin prices continue to decline, bitcoin mining will face problems. As Coinphony reported, Frank Holmes, CEO of US Global Investors, suggested that if Bitcoin reaches $12,000, mining could shut down globally.
Impact on the price of bitcoin
Although the miner’s increase in sales reflects the general state of the market, the trend has historically been used as a precursor to a possible upward movement in the value of bitcoin. In this case, measurements usually indicate a possible bottom.
Bitcoin is still trying to find a bottom after a correction below $20,000, as the asset broke through $20,000 as the market tried to adapt to the FTXcrypto exchange debacle. At the time of writing, the asset is trading for $16,500.
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Bitcoin miners speed up after sale with bears in control; What’s next for Bitcoin? It first appeared on Coinphony.