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.
Tai Bitcoin kalnakasių kraujo vonia.
Agresyviausias kalnakasių pardavimas per beveik 7 metus.
400% tik per 3 savaites!Jei kaina greitai nepakils, pamatysime, kad daug Bitcoin kalnakasių išstos iš verslo. pic.twitter.com/4ePh0TIPmZ
- Charlesas Edwardsas (@caprioleio) Lapkritis 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 duomenys, 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. Ataskaitos revealed that energy costs across Europe nearly doubled compared to a year ago.
#Bikcoinas kalnakasys Hash Price nukrito iki visų laikų žemiausio lygio – 58.3 tūkst. USD už Exahash per dieną.
Su $ BTC Dabar kainos nukritusios daugiau nei 76 % nuo piko, kasybos pramonė ir toliau patiria didžiulį spaudimą.
Tiesioginė informacijos suvestinė: https://t.co/64jyX7mRzj pic.twitter.com/z692xIFU7k
- stiklo mazgas (@ stiklo mazgas) Lapkritis 18, 2022
Glassnode tweeted on Nov. 18 that kalnakasys 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 rodo 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 #analitika #bitcoin #Crypto pic.twitter.com/0no8vEFZF0
- „IntoTheBlock“ (@intotheblock) Lapkritis 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.
Kas užsidarė #bitcoin #btc kasyba. Paskutinis bitkoinų blokas, rastas daugiau nei prieš 30 minučių, yra 15–25% bendras bitkoinų maišos sumažėjimas tinkle. Kažkas didelis ar keli ką tik išjungė maitinimą. pic.twitter.com/8OWLX7cRa0
– Bitsbetrippin (@BitsBeTrippin) Lapkritis 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.
Kaip blogai yra kriptovaliutų žlugimas?
Mano draugas šeimininkas Dalase ką tik manęs paklausė, ar aš ką nors žinau apie bitkoinų kasėjus:
„Ši bitkoinų kasybos įmonė nevykdė įsipareigojimų, išsikraustė ir paliko visą savo įrangą.
200 skruzdėlynų medžiotojų 🏃🏽♂️💨 pic.twitter.com/qUNStCYT5F
– Zackas Guzmanas (@zGuz) Lapkritis 21, 2022
Source: https://cryptoslate.com/bitcoin-miners-selling-aggressively-as-crypto-market-continues-to-struggle/