bitcoin (BTC) miners face increasing sell pressure as the flagship digital asset’s value continues to struggle below the $16,000 mark.
Capriole Fund founder Charles Edwards on Nov. 21 said miners were selling at the most aggressive rate in almost seven years, with a 400% increase in selling pressure over the last three weeks. He added that several Bitcoin miners could go out of business if the digital asset’s value does not rise soon.
To je krvoproliće Bitcoin rudara.
Najagresivniji rudar koji se prodaje u posljednjih skoro 7 godina.
Do 400% za samo 3 sedmice!Ako cijena uskoro ne poraste, vidjet ćemo da mnogi Bitcoin rudari ne rade. pic.twitter.com/4ePh0TIPmZ
- Charles Edwards (@caprioleio) Novembar 21, 2022
Miners face a precarious situation
The current market condition presents a difficult position for miners amid rising energy costs, high mining hashrate and declining BTC value.
According to Coinwarz podaci, Bitcoin’s mining hashrate currently stands at 243.64 EH/s which is a steep drop from the all-time high of 347.16 EH/s. Despite the drop, it is still relatively high and presents a problem for miners because it affects mining difficulty at 36,762,198,818,467.
Analysts have predicted that the next mining difficulty could be extremely negative as blocks aren’t being found or are being found late due to the high mining difficulty.
Meanwhile, energy costs are rising globally as miners now have to pay more to operate their equipment. Izvještaji revealed that energy costs across Europe nearly doubled compared to a year ago.
#Bitcoin Miner Hash Price je pao na novi najniži nivo svih vremena od 58.3 hiljada dolara po Exahash-u dnevno.
sa $ BTC cijene sada pale preko 76% u odnosu na vrhunac, rudarska industrija ostaje pod ogromnim pritiskom.
Kontrolna tabla uživo: https://t.co/64jyX7mRzj pic.twitter.com/z692xIFU7k
- glassnode (@glassnode) Novembar 18, 2022
Glassnode tweeted on Nov. 18 that rudar Hash Price plunged to a new all-time low of $58,300 per Exahash daily, confirming the extent of the pressure on the industry.
Mine and Hodl strategy haunts miners
Several BTC miners prefer to mine and hold the digital asset, hoping its value would keep rising. But with Bitcoin trading at a new bear market low of below $16,000, it becomes more difficult for miners to achieve profitability as the asset’s value drops.
Edwards said miners have discovered that:
“Mine-and-hodl is not a viable strategy as a Bitcoin miner. Miners are paying the consequences of the “never selling” arrogance widespread just six months ago.”
Glassnode data shows that the total balance of all crypto miners has dropped to a ten-month low this week. Miners now hold about $30.4 billion, approximately 10% of all Bitcoin.
Meanwhile, IntoTheBlock’s data emisije that over 50% of Bitcoin holders are losing money on their position for the first time in the last two years.
For the first time since March 2020, over 50% of Bitcoin holders are losing money on their position.
In 2015, the number of holders losing money on their Bitcoin reached 62%. In 2018, it was 55% and we are currently at 52%.#onchain #analytics #bitcoin # Kripto pic.twitter.com/0no8vEFZF0
- IntoTheBlock (@intotheblock) Novembar 21, 2022
Some miners are already going off
Some miners have already begun to feel the pinch and are capitulating already.
Bitcoin miner Iris Energy defaulted on a $108 million debt and will cease operations at two of its facilities. The network felt the impact of the action as Bitsbetrippin tweeted that a large operator powered down its services, resulting in a 15-25% drop in total bitcoin hashrate.
Ko se isključio #bitcoin #btc rudarstvo. Posljednji blok bitcoina pronađen prije više od 30 minuta, ovo je pad ukupnog hešrate bitcoina u cijeloj mreži za 15-25%. Neko veliki ili nekoliko je upravo isključeno. pic.twitter.com/8OWLX7cRa0
- Bitsbetrippin (@BitsBeTrippin) Novembar 21, 2022
The famed host of Coinage, Zack Guzman, also tweeted that an unnamed Bitcoin miner defaulted on rent in Dallas and left all of its equipment behind.
Koliko je loš kripto kolaps?
Moj prijatelj stanodavac u Dalasu me je upravo pitao da li znam nešto o rudarima bitkoina:
“Ova kompanija za rudarenje bitcoina je izvršila neplaćanje, iselila se i ostavila svu svoju opremu.”
200 Antminers 🏃🏽♂️💨 pic.twitter.com/qUNStCYT5F
— Zack Guzman (@zGuz) Novembar 21, 2022
Source: https://cryptoslate.com/bitcoin-miners-selling-aggressively-as-crypto-market-continues-to-struggle/