Bitcoin miners are selling off their coins at a record pace after the top cryptocurrency by market cap plunged to its lowest price in 2022 this month.
- According to Charles Edwards – founder of Capriole Fund – bitcoin miners are under selling pressure I rocketed By 400% in just 3 weeks.
- Its data is backed up by a file Similar results From Glassnode, which showed total miner balances fell to a ten-month low this week. Their holdings are now worth about $30.4 billion, which is roughly 10% of the bitcoin supply.
It’s a bloodbath for bitcoin miners.
Most aggressive miner sale in almost 7 years now.
400% increase in just 3 weeks!
If the price does not rise soon, we will see many bitcoin miners go out of business. pic.twitter.com/4ePh0TIPmZ
– Charles Edwards (@caprioleio) November 21, 2022
“If the price doesn’t go up soon, we will see a lot of bitcoin miners out of business,” Edwards said.
- Mining companies rely on the fixed 6.25 BTC block reward as their source of income. The block is mined approximately once every ten minutes using computational power.
- As mining becomes a more competitive industry and network difficulty increases over time, participants must search for more energy efficient mining resources to remain profitable.
- This task becomes more difficult during a bear market when the value of bitcoins produced per block is much lower in dollar terms.
- As such, many large mining companies have been forced into it sold Large amounts of bitcoin in 2022 to stay afloat, after steadily accumulating in 2021.
“What we’re seeing is not sustainable,” Edwards continued. “Mining and scammers are not a sustainable strategy as a Bitcoin miner… you have to constantly manage (trade) your Bitcoin position in this market.”
- Last month, miners including Core Scientific and Iris Energy asserted that they were unlikely to be able to pay off their leased ASIC hardware by November. The first suggested that it can be applied for bankruptcy.
Bitcoin miner selling pressure after hitting a six-year high appeared first on CryptoPotato.