Only Miners Can Revive The $28K Bitcoin Price Dream As STHs’ Pressure Plunges Network Activity
Following the news of the FOMC and Sam Bankman-Fried’s manipulative plans to keep Bitcoin under $20K, traders are now experiencing fear about opening BTC positions. As a result, the BTC price has reached a stable zone near $26.8K. Currently, Bitcoin is facing short-term selling from holders, resulting in a failure to generate any surprising momentum above $28K. Hence, the dream of $28K is slipping further away as on-chain metrics indicate declining network activity and low volatility.
Only Miners Can Revive Bitcoin Price
On-chain data unveils a declining bullish hope for Bitcoin’s surge above $28K. CryptoQuant highlights that the main factor behind bearish outlook is the declining price volatility. A look at the charts for Active Addresses (SMA 7) and Transaction Count (SMA 7) reveals a significant uptick in Bitcoin ($BTC) deposits, withdrawals, and transactions in May of this year, due to the Ordinals. However, a sudden downturn emerged from September 19.
This decline signals a dip in Bitcoin network activity, primarily due to declined influx of new investments, which in turn lowers liquidity and price volatility. Moreover, a look at the total number of Bitcoin transferred reveals no change in balance between whales and institutional investors, suggesting that the hope for a bullish rally above $28K is low.
However, Bitcoin’s aim for a bullish rally above $28K is not impossible. CryptoQuant reveals that miners could play the savior role in pushing Bitcoin’s price from its present stance. The hashrate and mining difficulty, crucial metrics that show the fundamentals of the Bitcoin network, are currently surging and displaying robust health.
But we need to keep a close eye on these metrics, especially if we see a big jump in Bitcoin being moved around. At this moment, we might start to see bigger price changes, and Bitcoin could break free from its falling prices.
What’s Next For Bitcoin Price?
After holding steady at the support of $26,500, Bitcoin price witnessed a surge in buying demand and the price made a minor recovery rally toward its 23.6% Fib channel. Currently, the price is forming a ‘double bottom’ pattern. As of writing, BTC price trades at $26,820, surging over 0.2% from yesterday’s rate.
Currently, bulls are attempting to hold the price above the EMA20 trend line. If successful, bulls might aim to test buyers’ patience at $28K. A surge above this level will validate a rally toward $30K.
If BTC price fails to meet buyers’ demand at $28K, we might see a quick selloff and BTC price might drop toward $26K.
The declining 20-day EMA and the relative strength index (RSI) way below the midline hint at possible downward movement in the short term.
Bitcoin Miners in Texas Compelled to Halt Operations Amid Electricity Crisis!
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Texas Bitcoin miners have been forced to shut down most of their operations as the state struggles with a severe power crisis. This follows an over 90% curtailment of operations for miners this week. Despite being a top destination for Bitcoin mining due to its low-cost energy and favorable regulations, the state has seen all industrial-scale miners halt their operations amid the energy crisis. Companies such as Riot Platforms Inc. and Marathon Digital Holdings Inc. have major facilities in Texas.
LTC Halving Approaching: Crucial Indicators for Miners
As one of the earliest cryptocurrencies, Litecoin has always been a key player in the industry. This coin once again captured the spotlight this June. As it became one of the four cryptocurrencies supported by EDX Markets. This and the upcoming halving have helped Litecoin record exceptional performance in the first half of 2023. By the end of Q2, the LTC price surged by an impressive 54.29%, peaking at $113. Despite a slight dip in July, LTC has grown more than 29% in value so far this year, outperforming many other assets, including gold.
Litecoin now ranks as the 12th largest cryptocurrency, with a market cap of approximately $6.68 billion. Miners who keep the network running produce around 7,200 LTC daily, valued at $648,000. With the LTC halving drawing near, in addition to putting in hashing power, miners also need to keep track of the following key metrics to make wise decisions during this critical period.
Date: The halving is expected to take place on August 2 or 3, only less than 3,700 blocks away.
Reduced block reward: The halving will bring down the block reward from 12.5 LTC to 6.25 LTC.
I. Exchange Netflow
Exchange netflow is an indicator that measures the difference between the inflow and outflow of funds on cryptocurrency exchanges during a specific period. Understanding this metric helps miners gauge the strength of buyers and sellers on exchanges and track market trends.
A positive exchange netflow indicates that more coins are flowing into exchanges. This could trigger an oversupply and a bearish sentiment, resulting in a decline. Conversely, a negative netflow means that more coins are leaving exchanges. Which may cause a shortage and a bullish sentiment, leading to a surge.
According to Chainalysis, as of July 26, only 180,500 LTC flowed into exchanges, which is below the average level recorded over the past 180 days. This suggests that more miners and investors tend to hold onto LTC in wallets rather than selling them off. As a result, there might be a short-term shortage, which could drive up the price.
II. Whale Holdings
Cryptocurrency whales are individuals or entities with massive cryptocurrency holdings that can significantly influence the market. Whales often own millions or even billions of coins; they have a material impact on market prices through large-scale buying and selling activities, which makes them a critical force in the market. In the cryptocurrency space, whales are often the focus of all investors because their investment patterns usually indicate market trends.
Data from ViaWallet Explorer shows that all of the top ten LTC whales made transactions in June or July this year. In particular, the address starting with “M8T1” now has the largest LTC holding, and its balance has remained stable over the past year; the whale address starting with “MQd1”, on the other hand, has been hoarding Litecoin since the beginning of 2023. Additionally, the address starting with “ltc1” purchased 2.375 million LTC on May 27 and has maintained a stable balance since then.
Moreover, the top 100 whales currently control over 44% of the total LTC supply, according to ViaWallet’s Rich List.
III. Network Transactions
Network transactions represent the willingness of users to use Litecoin for transactions. Since early May, driven by the BRC-20 boom and the introduction of the LRC-20 protocol, the LTC network has seen a surge in transactions. On May 10, the network processed over 600,000 transactions within 24 hours, a record high. During that period, Litecoin’s daily transaction volume was on par with Bitcoin’s, and the number of active LTC addresses reached an all-time high.
Although the figures dipped after the excitement around LRC-20 cooled down, the network’s average daily transaction volume still exceeds last year’s levels.
IV. Network Hashrate and Difficulty
Hashrate and difficulty are two indicators that measure the sentiment of the mining community. According to data from a blockchain explorer, the LTC hashrate has kept rising since 2023 kicked off and set a new record of 1.03 PH/s on July 3.
This hashrate spike indicates that more miners are joining the LTC community, which will make the network safer and stabler. For some cryptocurrency analysts, the surging hashrate is a leading signal of upcoming price growth.
In the past week, Litecoin added 4,045 new blocks, 1,382 blocks of which were from ViaBTC, the largest LTC mining pool. The next difficulty adjustment is only two days away, and at the current daily production rate of 571 blocks, the third halving will occur in just 155 hours, which is less than 7 days.
About ViaBTC
ViaBTC, founded in May 2016, has provided professional, efficient, safe and stable cryptocurrency mining services. For over one million users in 130+ countries/regions around the world, with a cumulative mining output value of tens of billions of dollars. As a world’s top all-inclusive mining pool, it provides mining services for dozens of mainstream cryptocurrencies including BTC, LTC, KAS, etc. Backed by the one-stop, all-inclusive services spanning the mining pool, the exchange, and the wallet, ViaBTC is committed to offering global users more abundant supporting tools, stabler and more efficient mining services, and better product experience.
US Government Rolls Out New Crypto Tax Guidelines, Lets Miners Breathe Easy
According to a recent report by the Wall Street Journal, the Biden Administration has unveiled its much-anticipated new tax reporting rules for digital assets. While some decentralized exchanges (DEXs) find themselves under increased scrutiny, cryptocurrency miners can breathe a sigh of relief.
US Treasury Defines ‘Broker’ For Crypto Industry
Under a newly proposed rule from the U.S. Treasury Department, crypto brokers—including exchanges and payment processors—would be required to disclose additional user transaction data to the Internal Revenue Service (IRS). This initiative is a component of a wider effort by both Congress and regulatory agencies to clamp down on crypto users who might be evading tax obligations.
The U.S. Treasury Department has clarified its “broker” definition for the crypto industry, outlining tax reporting duties for various crypto entities. A new tax form, 1099-DA, has been introduced for this purpose. The guidance, part of a 300-page proposal, states that miners are exempt, but some decentralized finance platforms must adhere to the tax rules.
The proposal defines “broker” to include centralized and decentralized crypto trading platforms, payment processors, and certain digital wallets. It covers cryptocurrencies such as Bitcoin and Ethereum, as well as NFTs.
Major crypto exchanges and brokers have been given more time than initially expected to adapt to new tax-reporting rules under the 2021 Infrastructure Investment and Jobs Act. The proposal is still under review, with public comments accepted until October 30 and hearings scheduled for November 7-8.
Decentralized exchanges may face challenges due to reporting requirements. Final rules will be set after months of industry lobbying, aiming for implementation by the 2025 tax year. This offers the industry some leeway, as many had expected changes as early as next year.
The Treasury said, “This is part of a broader effort at Treasury to close the tax gap, address the tax evasion risks posed by digital assets, and help ensure that everyone plays by the same set of rules.”
These New Rules Could Bring $28 Billion
The proposal expands reporting obligations to digital asset transactions exceeding $10,000 in cash. When the bill was enacted, it was projected to generate nearly $28 billion in revenue over ten years.
The IRS confirmed to the industry last year that existing laws and regulations would remain in effect until the new tax guidelines are finalized. Despite the recent release of the proposal, the process is far from being completed.
Regarding the law’s stipulations, several complex issues remain to be addressed. These include how companies handle transactions involving private wallets that are not visible to the business, and how broker records will account for activities on fully decentralized platforms.
The updated tax rules signal that the U.S. government is giving significant attention to the crypto sector, as evidenced by legal actions against major exchanges like Binance and Coinbase, as well as legislative measures concerning crypto stablecoins.
Bitcoin miners diversify income ahead of halving event: JPMorgan!
JPMorgan has reported that Bitcoin miners are diversifying their operations ahead of the upcoming halving event. The investment bank cited data from blockchain analysis firm Glassnode, which showed that miners are moving away from solely relying on block rewards and are instead increasing their income streams through transaction fees and other services. This diversification is seen as a response to the upcoming halving, which will cut the reward for mining a block in half, reducing miner revenue by 50%. By expanding their income streams, miners are hoping to offset the impact of this reduction and remain profitable.
Crypto Miners Raging about this new Bitcoin alternative
Crypto mining was once a highly profitable venture for many. However, with the changes in the crypto landscape, this is no longer the case. And that is why crypto miners are raging about this new Bitcoin alternative, Bitcoin Spark.
How to mine Ethereum?
Mining Ethereum (ETH) involves using powerful graphics cards to solve complex mathematical puzzles to verify transactions and add new blocks. However, The Merge marked a transition for Ethereum from the Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS). In PoS, miners are replaced by validators who lock up a certain amount of Ether as collateral to participate in block validation. Validators are chosen to create new blocks based on how much Ether they have staked. The Merge effectively phased out the traditional PoW mining, making it no longer possible to mine ETH.
ETC price
Ethereum Classic (ETC) is an Ethereum hard fork that was created in 2016. Its unique selling point lies in preserving the principles of decentralization and immutability. In its earlier days, ETC traded at relatively lower prices, often overshadowed by Ethereum (ETH). However, ETC has gained the attention of miners due to its Proof-of-Work (PoW) consensus mechanism, which allows them to mine and earn ETC rewards. Despite this, concerns about energy consumption and profitability of PoW-based cryptocurrencies like ETC have sparked discussions about their long-term viability, contributing to the challenges faced by crypto miners.
Bitcoin Spark (BTCS): The revolution of crypto mining
As a Bitcoin fork, Bitcoin Spark maintains various aspects of BTC, including a fixed supply and mining to validate blocks and secure the network. However, solving hexadecimal hashes will not be the main way BTCS mining rewards are provided as Bitcoin Spark introduces a new consensus mechanism known as Proof-of-Process (PoP).
The PoP is a cross between Proof-of-Work (PoW) and Proof-of-Stake (PoS) and will require miners to provide a stake on the network in addition to the processing of their mining devices to confirm blocks and earn rewards. The Proof-of-Process (PoP) will be combined with an algorithm that restricts linear rewards based on stake size and raw processing power to ensure a fairer distribution of rewards and prevent a situation where a single miner becomes too powerful.
Harnessing Energy for Real-World Utility
The power provided by BTCS miners is used by the Bitcoin Spark ‘clients’ that rent network power as remote computing processing for high CPU or GPU load tasks, ensuring the energy used in block confirmation has actual use. The clients pay in BTCS, which is forwarded to the mining pool as mining rewards, boosting the profit for miners.
Bitcoin Spark ensures that anyone with a smart device can mine BTCS through its innovative application. The Bitcoin Spark application will be compatible with Android, iOS, Windows, Mac OS, and Linux devices and will allow users to mine by permitting access to the device’s processing unit. The application will function in its own virtual environment, not interacting with or affecting any other device part. It will also automatically limit the mining capability by adjusting the processing power used for overheating, battery, and simultaneous usage needs. This ensures the energy and work required for block confirmation is low.
The minting rewards for BTCS are adjusted based on various factors, including the revenue generated: the more revenue, the further the minting endpoint. Notably, the ability for unlimited devices to provide processing power to the Bitcoin Spark network increases the product potential infinitely, which could lead to an autonomous revenue-generating network that enables its participants to remain profitable while maintaining a limited supply.
Bitcoin Spark is in Phase 2 of its initial coin offering (ICO), with BTCS priced at $1.75 and investors receiving a 15% bonus. The project has bolstered investor confidence through its successful audits and is receiving increased investments.
For more information on Bitcoin Spark:
Website: https://bitcoinspark.org/
Bitcoin Miners Brace for Halving Event: Six-Figure Price Needed for Sustainability
The world of Bitcoin mining has been closely monitored as the halving event approaches, and a recent analysis sheds light on the critical price point that miners need to sustain profitability. With Bitcoin’s price constantly dropping below the $30,000 level, forecasts of Bitcoin reaching a six-figure price by the end of 2024 persist.
Challenges Ahead for Public Miners, Bitcoin Halving Approaches?
Bitcoin mining stocks have been showing impressive performance, outpacing BTC itself in recent months amid reduced volatility and consolidation in the cryptocurrency market. While Bitcoin has seen a steady rise, mining companies’ stocks have surged by almost 100% within a short period.
A report by Seeking Alpha focuses on a prominent mining company, Riot Platforms, and examines the challenges it may face, especially with the upcoming halving event. The halving will lead to a 50% reduction in BTC block rewards, significantly impacting miners’ revenue streams.
To cope with the halving effects, miners like Riot may consider issuing new equity shares to fund their operations. However, this could dilute existing shares, potentially affecting share prices even if the company’s fundamentals remain strong.
Moreover, some mining stocks may already be overbought at current valuations, raising concerns about their sustainability. While to remain profitable at the current hash rate levels, miners will likely need a substantial surge in Bitcoin’s price.
Miners Struggling to Stay Afloat: Six-Figure Bitcoin Prices Needed
In the world of Bitcoin mining, staying profitable has become a significant challenge. An in-depth analysis indicates that miners’ operational viability relies on the BTC price surging beyond $100,000.
This price point factors in the halving’s impact, which reduces the supply of new Bitcoins entering the market, consequently affecting miners’ rewards.
“The report highlights that the Bitcoin sector could face serious consequences unless the cryptocurrency exceeds expectations. For instance, Riot Platforms, with its ambitious 35 EH/s mining capacity, would require Bitcoin to trade above $98,000 to justify its current valuation after the upcoming halving.”
However, the report warns investors that holding BTC mining stocks could be “extremely risky.” The underlying fundamentals may not be keeping up with current valuations, which may not be factoring in the effects of next year’s Bitcoin halving.
BTC Price Soaring to $125,000 in 2024?
There has been plenty of speculation about Bitcoin’s future price, and a recent Matrixport report adds to the excitement. According to the report “Matrix on Target: Prepare for the Soaring 2024 Year-End Bitcoin Target of $125,000,” Bitcoin will reach $45,000 by the end of this year and $125,000 by the year 2024.
The significance of Bitcoin hitting a one-year high after a year-long gap is not lost on the authors. Historically, this signal has marked the start of new bull markets, as seen in previous occurrences in August 2012, December 2015, May 2019, and August 2020. The subsequent bull markets emerged in 2013, 2017, and 2021.
Based on this pattern, the report suggests a 100% probability of another massive bull market for Bitcoin by the end of 2024, culminating in a price target of $125,000 (+310%) – a six-figure prediction that aligns with forecasts from other reputable sources.
With Standard Chartered also projecting a $120,000 Bitcoin price by 2024, it seems the crypto community is gearing up for exciting times ahead, fueled by optimism and expectations of a flourishing BTC market.
As the mining landscape evolves, miners are closely watching Bitcoin’s price trajectory to ensure their operations remain sustainable and profitable in an ever-changing market.
Bitfinex Unveils Miners’ Dual Strategy: Bullish Betting & Protective Hedging
In the high-stakes world of Bitcoin mining, paradox reigns supreme. A recent Bitfinex market report spotlights a curious trend: miners demonstrating bullish behaviour by escalating their Bitcoin investments while simultaneously hedging bets amidst market volatility.
Mining and Hedging: The Dual Approach
Bitfinex’s deep dive into the Bitcoin mining sector illuminates an interesting pattern of behavior. Miners, while bolstering their Bitcoin commitments, have been offloading copious amounts of BTC onto exchanges. These sell-offs correlate with an uptick in Bitcoin mining companies’ share values, demonstrating increased institutional interest in BTC as we move further into 2023.
Out front leading the charge in the sell-off race is Poolin, responsible for a significant share of the Bitcoin sold off recently. Conversely, the record-breaking escalation in Bitcoin’s mining difficulty signifies miners’ robust confidence in the cryptocurrency’s prospects.
Bitfinex explains this seeming dichotomy by stating, “Miners are bullish on Bitcoin as they commit more resources to mining, thereby escalating mining difficulty, but they’re simultaneously hedging their position, hence the influx of Bitcoin to exchanges.”
Navigating the Derivatives Landscape
Bitfinex’s report suggests that the apparent contradiction might be a result of miners hedging their positions on derivative exchanges. The first week of July 2023 saw a noteworthy transfer of 70,000 BTC in 30-day cumulative volume, a volume that indicates a shift in mining behaviour. The report notes, “A transfer to exchanges on this scale is extremely rare and potentially reveals new miner behaviour.”
Decrypting the Miner’s Move
Several hypotheses have been proposed to explain this puzzling behaviour, including hedging activities in the derivatives market, executing over-the-counter orders, or transferring funds via exchanges for other, unknown reasons.
Simultaneously, the soaring mining difficulty signals the arrival of fresh mining power to the Bitcoin network, an encouraging sign of network health and optimism about mining profitability. This scenario, however, leaves miners in an intriguing position where they amplify their mining efforts while cautiously managing their market exposure.
Bitcoin Transfers: A Bull Market Indicator?
Bitfinex’s report further indicates that on-chain Bitcoin movements are transitioning from long-term to short-term holders. This trend is typical in bull market conditions, as new market traders hunt for swift profits while long-term holders take advantage of heightened prices.
As Bitcoin miners continue to bet big while meticulously hedging their risks, all eyes are trained on the impacts this dual strategy will have on the broader crypto market. The delicate balance act carried out by the miners underscores the dynamic nature of the evolving cryptocurrency landscape.
Miners Flood Exchanges with Bitcoin (BTC), DigiToads (TOADS) Poised to Exceed $6 Million Milestone
In the world of cryptocurrencies, where the market is driven by innovation and potential, investors are always on the lookout for promising opportunities. Among the sea of memecoins, DigiToads (TOADS) has emerged as a standout contender. DigiToads is a memecoin with real utility, making it a more attractive investment than many of its peers. The project is backed by a strong team with a clear vision, and it has several unique features that set it apart from other memecoins.
With a highly successful presale that raised over $5.8 million, DigiToads is making waves in the crypto community. Currently priced at $0.047 per token, with over 357 million tokens sold (over 95% of the supply allocated for presale), DigiToads is poised to exceed the $6 million milestone.
DigiToads (TOADS)
One of the key factors that sets DigiToads apart and makes it a great investment opportunity is its unique TOAD Economics. This innovative economic model is designed to incentivize and reward token holders while promoting the long-term sustainability of the ecosystem. The core element of TOAD Economics is the staking mechanism, which presents an opportunity for passive income generation. With each transaction involving TOADS tokens, 2% of the total value is allocated to the staking rewards pool.
The staking rewards pool serves as a source of income for staked TOADS NFTs, creating a cycle that benefits dedicated Toad-ficionados. By staking their TOADS tokens, investors not only contribute to the stability and growth of the ecosystem but also have the opportunity to earn passive income in the form of staking rewards. This unique mechanism encourages long-term holding, fostering loyalty among the community and promoting a healthy token ecosystem.
Furthermore, TOAD Economics contributes to the scarcity and value appreciation of TOADS tokens. With each transaction, a portion of the tokens is allocated to the staking rewards pool, effectively reducing the circulating supply. This reduction in supply, combined with the growing demand from investors and community members, can drive the value of TOADS tokens higher over time. The scarcity effect created by the economic model adds an additional layer of value and potential returns for investors.
In addition to its strong economic model, DigiToads places a significant emphasis on community engagement and ownership. By being owned by the community, DigiToads ensures that decision-making power rests with the token holders. This community-driven approach fosters a sense of shared responsibility, encourages active participation, and promotes the overall health and growth of the ecosystem.
Moreover, DigiToads distinguishes itself by its commitment to philanthropy. The project pledges 2.5% of all profits to charities dedicated to reforestation and the preservation of Amazonian species. What sets DigiToads apart is that the community chooses the charities, ensuring that the impact aligns with the values and priorities of the token holders. This focus on philanthropy not only generates a positive impact but also contributes to the project’s reputation and attracts socially conscious investors.
Bitcoin (BTC)
In recent months, there has been increased regulatory scrutiny of cryptocurrencies in some countries. This has led some miners to sell their BTC in order to raise cash to meet regulatory requirements. The profitability of Bitcoin mining has also been declining in recent months, as the difficulty of mining has increased and the price of BTC has fallen. This has led some miners to sell their BTC to cover their costs.
Furthermore, some miners may be using their BTC as collateral for derivatives trading. This means that they have borrowed money against their BTC holdings, and they are required to deposit BTC with the lender as collateral. If the price of BTC falls, the miners may be forced to sell some of their BTC to meet their collateral requirements.
Lastly, as China has cracked down on cryptocurrency mining, many miners have been forced to move their operations to other countries. This has led to a decrease in the hash rate of the Bitcoin network, and some miners may be selling their BTC in order to raise cash to fund their relocation.
Conclusion
While miners are flooding exchanges with Bitcoin (BTC), DigiToads (TOADS) stands out as a promising investment opportunity in the memecoin market, with its successful presale raising over $5.8 million and over 357 million tokens sold (over 95% of the supply allocated for presale). With a current token price of $0.047, DigiToads is well-positioned to exceed the $6 million milestone and continue its upward trajectory.
The unique TOAD Economics, community ownership, and commitment to philanthropy make DigiToads an attractive choice for investors seeking both financial gains and positive impact. With its innovative economic model, engagement in real-world initiatives, and commitment to community ownership, DigiToads presents a compelling case for investors looking to capitalize on the immense potential of the cryptocurrency market.
Visit DigiToads Presale | Mint DigiToads NFTs Here | Join the community
Institutional Demand Drives Bitcoin Surge; Miners Make Strategic Moves
The Bitcoin (BTC) market maintained its consolidation phase, hovering slightly above the $30.3k mark on Wednesday, as investors eagerly awaited a potential rally.
With the cryptocurrency world abuzz with anticipation, the question on everyone’s minds is: Will this consolidation lead to a breakthrough, propelling Bitcoin to new heights, or will it result in a surprising twist that catches even the most seasoned traders off guard? The stage is set and the tension is palpable. Read on.
Bitcoin ETF Frenzy: A Race to the Top
The frenzy surrounding Bitcoin exchange-traded funds (ETFs) persisted, as investment firm Fidelity, managing a staggering $4.2 trillion, appeared to be gearing up to file another application on Tuesday. This move follows the footsteps of major players such as BlackRock, Bitwise, Invesco, and WisdomTree, who have already filed their Bitcoin ETF applications with the United States Securities and Exchange Commission (SEC).
Also Read: Bitcoin ETFs to Be Given the ‘Green Light’, Says Circle CEO
With such prominent institutions stepping into the arena, experts speculate that the SEC might succumb to the mounting pressure from big money and approve the first-ever Bitcoin ETF.
Why are Miners Moving Away From Bitcoin?
With institutional investors increasingly showing interest in Bitcoin and its related products, miners are beginning to shift their attention towards bullish speculative traders, less than a year after the halving event.
On-chain analysis provided by CryptoQuant reveals that Bitcoin miners have recently sent over $1 billion worth of Bitcoins to exchanges. However, it is important to note that this influx of Bitcoins to exchanges does not necessarily indicate intentions to sell.
In particular, since June 15, Bitcoin miners have dispatched approximately 33,860 BTC units to derivative exchanges. Nevertheless, after conducting an in-depth data analysis, CryptoQuant concluded that the majority of these Bitcoins have been swiftly retracted and returned to proprietary wallets.
Exploring New Avenues
Consequently, Bitcoin miners have witnessed a reduction of around 8,000 BTC from their reserves, with only a small portion finding its way to spot exchanges.
“This could signal that miners may be using their newly minted coins as collateral in derivatives trading activities. A good example of this type of trading is known as “hedging”, which uses bets in the opposite direction to market consensus,” CryptoQuant noted.
Survival of Bitcoin Miners Hinges on Low Power Costs and Sustainable Energy Sources, JPMorgan Warns
In a research report released on Thursday, JPMorgan stated that Bitcoin (BTC) miners who have access to inexpensive electricity and utilize a sustainable energy mix are more likely to thrive in the increasingly competitive landscape.
The report emphasizes that electricity costs are a key factor in mining expenses and highlights miners’ efforts to find cost-effective and environmentally friendly energy sources to safeguard their profitability.
Notably, electricity prices have been declining, particularly in the United States, which is a major hub for Bitcoin mining operations and contributes significantly to the overall hash rate. Lower electricity costs are expected to help mitigate the rising production expenses amid the current phase of heightened hash rate.
JPMorgan’s report highlights difficulties faced by miners
The report underlines the crucial role of power costs in the bear market experienced by miners in the past year, leading to their struggle for survival. While the average global electricity price for bitcoin miners stands at around $0.05 per kilowatt hour (kWh), some larger mining firms have managed to secure rates as low as $0.03/kWh. These reduced electricity expenses enable prominent Bitcoin miners to maintain profitability even in the face of intense competition and surging hash rates, setting new records.
Conversely, “vulnerable” miners, including Core Scientific, Argo Blockchain, and Iris Energy, have faced significant challenges due to a combination of falling bitcoin prices, increasing debt servicing costs, and rising electricity expenses. JPMorgan predicts that the bitcoin mining industry will eventually consolidate and become more competitive, with only miners boasting lower production costs able to survive in the long run.
Furthermore, miners have been actively diversifying their energy sources with a focus on renewables to enhance their environmental sustainability and align with growing concerns about eco-friendly practices.
Investors, Alert! Bitcoin Under Siege As Miners Sell Off Holdings
Recent data from Glassnode indicates a surge in Bitcoin (BTC) miner outflow, hitting an 11-month peak of 1.104. This level has not been seen since June 16, 2022, when it reached 1.068. The spike in miner outflow signals that BTC miners are offloading their holdings at the fastest pace in almost a year.
The Cause for Miner Sell-Off
While the exact cause for the negative sentiment among miners is unclear, several factors could be at play. One possible explanation is the recent suspension of Bitcoin (BTC) withdrawals by Binance due to transaction congestion.
Another reason could be that miners are capitalizing on their holdings as miner revenue hits a yearly high. Data from Blockchain.com reveals that on May 8, 2023, Bitcoin’s (BTC) miner revenue reached $41,744, a level not seen since April 2022. Fearing a potential decline in revenue, miners might be cashing in on their BTC while it’s still profitable.
Related: Top Reasons Why Binance is Seeing Massive Bitcoin Outflow – Coinpedia Fintech News
A New Source of Revenue
Interestingly, for the first time since 2017, some Bitcoin (BTC) miners are earning more by processing transactions on the blockchain than by minting new BTC. This change could bring a silver lining to the beleaguered industry, which has faced numerous challenges lately, including multiple bankruptcies.
The Mining Profitability Equation
Bitcoin miners typically profit in two ways: creating new BTC through complex calculations and processing transactions on the network. As intended by the system’s design, the former has become less lucrative over time. Periodically, the mining reward is halved, currently standing at 6.25 BTC, and is set to decrease again next year.
This decline poses a potential long-term threat to mining profitability. Eventually, the mining reward could become insignificant, and ultimately disappear once all BTC has been mined (likely more than a century from now). Consequently, the recent spike in earnings from processing transactions could be a welcome development for the industry, especially considering the hardships faced by miners during the ongoing crypto downturn.
Also Read: Bitcoin Price Prediction 2023, 2024, 2025, 2026 – 2030
Bitcoin Miners Dump Their Holdings, Will it Ignite a Sell-Off?
The Commodities Futures Trading Commission (CFTC) has sued Binance, the biggest cryptocurrency exchange in the world, and as a result, there is a lot of uncertainty right now in the cryptocurrency market. After an impressive rally, Bitcoin is now fighting to rise above the $27,000 level following yesterday’s 5% decline.
Amid the chaos in the market, Bitcoin miners have started to dump their BTC holdings. According to the Bitcoin Miner to Exchange Flow measure, on Tuesday, miners transferred about 1700 BTC to cryptocurrency exchanges. With a sell-off of nearly 3K BTC on January 19, this is the second-largest sell-off by miners YTD.
Also, according to the Bitcoin Miner Reserve statistic, miners’ holdings of BTC have declined. It shows that miners have begun to sell their Bitcoin holdings which will cause a decline in the price of Bitcoin. The Binance mining pool moved 1646 BTC to the Binance exchange, according to data from the Bitcoin Miner to Exchange Flow for Binance Pool.
Will Bitcoin experience a notable decline?
The largest cryptocurrency’s price has dropped 2% in the past day to $26,817, its lowest level since almost two weeks when its most recent surge gained pace and drove prices to approximately $28,500, their highest point since last June.
The latest decline is only a glitch in an otherwise strong trend; Bitcoin has increased from $16,500 at the beginning of the year amid a rally that has given hopes for a new bull market.
Popular analyst Rekt Capital claimed that it would just need a BTC closure below $27,000 within a daily timeframe to start the breakdown process. While the price of bitcoin is now staying at $26,500, uncertainties and the monthly close, however, increase the chance that the price of bitcoin will retake the 200-weekly moving average (WMA).
Bitcoin Miners Signal Bearish Trend: What’s in Store for Cryptocurrency Investors?
As the monthly close ushers in a new week of market movement, Bitcoin continued to strive for a bullish conclusion to February. As the second month of 2023 came to an end, the largest cryptocurrency held onto its gains, sustaining the optimism of bulls. It might be decision time for a crucial region of Bitcoin price activity around $25,000 in the upcoming week.
Recently, the value of bitcoin has increased, and the mood of the market is improving. A crucial group in the bitcoin market, the miners, haven’t yet demonstrated any bullish behavior, though.
The miner reserve statistic, which gauges how much bitcoin miners have in their wallets, is shown in the chart below. If this pattern holds, the market may become oversupplied due to the selling pressure, which would result in another drop in price.
Amid the ongoing price predictions for Bitcoin, it was reported that BTC miners are moving their reserves to exchanges. Up to the next recalculation, mining profitability rises when the price of bitcoin rises. Profitability is uncertain because it depends on the asset’s price.
It was earlier observed that miners have demonstrated a high faith in operational effectiveness and a future rise in the price of bitcoin. But data suggests otherwise. According to the statistics, Bitcoin miners have started to decrease their reserves in the wake of the recent price increase. 400 Bitcoin or so have lately been sent to exchanges by miners.
According to the data, from February 24, 2023, total miner reserves have decreased by 1400 Bitcoin. The whales are awaiting a sell-off in this area. Exchange Whale Ratio (72 hours) is above 0.85 according to on-chain data. While the daily exchange Whale Ratio is more than 0.6.
As reported by Glassnode, there are now 2,005 addresses holding more than 1,000 Bitcoin, a three-year low. Addresses with more than 100 Bitcoin have recently fallen to a 1-month low of 16,043. The BTC percentage supply, however, attained an ATH of 28.28% after being inactive for more than 5 years.
Bitcoin (BTC) Price Set To Surge High As Miners Halt Selling
The Bitcoin market has seen an upward trend in the past 24 hours, reaching a high of $24,000 earlier today. With the current price trading at around $23,869 in the Asian market, the market has seen a 3% increase. Market analysts predict further growth in the future, driven by both fundamental and technical factors.
Bitcoin Price Outlook from Puell Multiple’s Perspective
One such indicator that maps out Bitcoin price is the Puell Multiple. This is calculated by dividing the daily value of Bitcoins in U.S. dollars by the 365-day moving average of its daily value. According to the Puell Multiple, there may be relief on the horizon for Bitcoin miners who have been under increased sell pressure in the past year.
In the past, every time the Puell Multiple entered the green zone, it resulted in significant returns in the following months. Currently, the Puell Multiple has been in the green zone for 191 days, which suggests further upside movement in the price of Bitcoin. Philip Swift, the founder of lookintobitcoin.com, highlighted the relief for miners, stating that
“the Puell Multiple shows recent relief for Bitcoin miners. After 191 days in the capitulation zone, the Puell Multiple has rallied, showing relief for miners via increased revenue and likely reduced sell pressure.”
If Bitcoin continues to rally, this could trigger a pump in other cryptocurrency markets, including meme coins such as Dogecoin, Shiba Inu, and Baby Dogecoin. Additionally, a study has shown that more money is flowing from large caps to lower caps. Overall, the outlook for Bitcoin remains positive, with market indicators pointing to further growth in the near future.
Are Bitcoin Miners Taking Profits? Is the Crypto Rally Coming to an End?
Bitcoin miners, a crucial group in the growth and operation of the BTC network, have sprung up in different parts of the world in the past two years. According to aggregate data provided by hashrateindex, six ASIC financing deals were executed in 2020 worth $47.84 million. The following year saw 26 financing deals completed worth approximately $662.25 million. Come last year, crypto miners raised a total of $641.80 million in 18 deals.
However, the situation turned for the worst after crypto prices significantly shrunk by the end of last year. As such, several crypto mining firms have filed for bankruptcy protection with others selling rigs to pay off their debts. The situation has been worsened by the rising global inflation that has resulted in high electricity bills.
For instance, most updated Bitcoin mining rigs on average return a daily profit of about $5 depending on the location and difficulty.
Bitcoin Market in 2023
Fast forward to the fourth week of 2023, and Bitcoin price has gained about 34 percent to trade around $22.6k on Wednesday. As a result, most miners are offloading both old and newly minted coins to stay on top of their accumulated debts.
“The sentiment among miners is better than in a long time. For many bankruptcy threatened players, the sudden increase in the bitcoin price is a lifeline,” said Jaran Mellerud, an analyst at Hashrate Index.
Notably, the January 2023 Bitcoin rally has mostly been attributed to whale account accumulation in large quantities. According to on-chain analytics firm Santiment, Bitcoin whales have accumulated a total of 70k BTC in the past three weeks.
Crypto News Live: Are Bitcoin Miners Preparing for a Massive BTC Price Pullback?
With the crypto space witnessing some relief from the bearish trend, the Bitcoin miners quickly started accumulating. This amplified the price smashed above $21,000 and also reached close to $21,500. However, the price is facing a minor pullback at the moment which is considered a minor correction, but some on-chain data shows that the miners may be preparing to dump which may hinder the progress of the rally ahead.
The Bitcoin hash rate rebounded to rise toward the highs, and the miner’s reserve also began to swell. It was believed that they might have started to accumulate after continuously selling them for more than 2 months. However, a recent discovery by a popular on-chain platform crypto quant may again push the markets into deep FUD.
As per the platform, the current pullback is led by the miners who are trying to mount selling pressure on the market. The indicator, Miner’s Position Index(MPI) which measures the ratio between the miner outflows and the 365-day moving average, shot up heavily.
The indicator when spikes heavily indicate that the miners are selling at a higher degree than usual. The value that spiked hit the value of about 4, the highest level since April 2022. A spike in the levels usually invites a decrease in the value of the crypto which has been prominent since the early trading hours.
At the time of writing, the Bitcoin (BTC) price was trading at $20,858 with a market capitalization of $401 billion. The price after recording a 24hr jump of nearly 5%, slides down to less than a percent at the moment, indicating the strengthening of the bearish hold. Therefore, if the data turns out to be true, a significant price plunge may be fast approaching.
Bitcoin Miners Might Suffer More in 2023
Bitcoin mining, like the rest of the cryptocurrency industry this year, has taken a serious hit. As we approach 2023, with the hope that the market will flip and crypto prices will recover, industry analysts predict that Bitcoin miners will continue to face hardships.
More and more enterprises will need to be vertically integrated by 2023, with their own power supply, in order to ensure long-term steady operation in the face of the halving, as cryptocurrency mining becomes an increasingly significant component of the energy market. For Bitcoin miners, the approaching halving is bad news. After the Bitcoin halving, miners’ block rewards would be drastically decreased.
What Experts Are Saying
Bitcoin mining experts are saying that it’s unlikely for the sector to get relief any time soon. The Chief Executive Officer of the Canadian mining company Hut 8 (HUT), Jaime Leverton, recently said in an interview with the media outlet CoinDesk that the worst is yet to come in terms of capitulation and bankruptcies, especially in the first half of 2023, and that she is unsure whether or not relief will come in the second half of the year.
According to Fiorenzo Manganiello, the founder of Cowa, a mining and venture-funding organization, purchasers would be better off simply acquiring bitcoin rather than dealing with the headaches of owning and managing devices to mine cryptocurrency.
Analyst at bitcoin mining service provider Luxor Technologies Jaran Mellerud believes that miners would utilize 2023 to fortify their financial positions and increase their operational efficiency unless a full-scale bull market occurs, which he also predicts is unlikely.
Glassnode’s numbers show that Bitcoin mining profit has been falling steadily over the previous several weeks. The selling pressure on miners would of course intensify if their income continues to fall.
On the other hand, Pierre Rochard, the Bitcoin Strategist at the cryptocurrency exchange Kraken, said not too long ago that the bitcoin mining income of December has returned to the level it usually is before the halving. In his analysis, he presented a chart that showed the daily average income generated by bitcoin mining from 2016 until 2022.
In contrast to prior years, the miners’ income has been quite low. In 2015, bitcoin mining profitability reached an all-time high of roughly $3.00/TH per second. But by 2022, the value has dropped to less than $0.104/TH per second.
Given that these experts have predicted no respite for miners in the near future, it seems like it’s going to be a rough year for the sector.
They had the best buckle up for the next twelve months because it’s likely going to be a rough one.
Bearish Clouds Haunt the BTC Price Rally, Will Bitcoin Be Stuck Under Miners’ Capitulation?
Bitcoin price again slumped below $17,000 after holding upright for some time during the previous trading day. Meanwhile, the Bitcoin (BTC) hash rate has also dropped as the miner continue to struggle as the price is undergoing a massive correction phase. Moreover, the BTC mining difficulty is expected to witness a huge adjustment.
As per the new update released by a popular on-chain data provider, Glassnode, the Bitcoin network has decreased the difficulty by more than 7% which is the largest in the past 12 months.
“The Bitcoin protocol has just decreased mining difficulty by -7.3%, the largest downwards adjustment since July 2021,”
“Given depressed coin prices, rising energy costs, and debt burdens, the mining industry is under extreme stress,”
On the other hand, the Bitcoin hash-ribbon indicator also suggests that the crypto is due for yet another massive downfall.
As seen in the above image, the hash ribbon is closer to getting inverted. Previously, when the hash-ribbons were inverted, the Bitcoin (BTC) price underwent significant price correction. Hence a similar action is speculated presently as the difficulty adjustment appears to be in response to the falling BTC hash rate.
“The difficulty adjustment is in response to falling Bitcoin hash-rate.
This has resulted in yet another inversion of the Hash-ribbons, as the 30DMA dives below the 60DMA.
The last hash-ribbon inversion occurred in early June 2022,”
Moreover, Bitcoin price is displaying a significant variation climbing in and out of the levels at $17,000. Hence the Bitcoin realised cap which shows the net sum of capital inflows and outflows has declined heavily. The capital inflows since May 2021 have been flushed out, signalling a capital reset is underway.
Bearish Clouds Haunt the BTC Price Rally, Will Bitcoin Be Stuck Under Miners’ Capitulation?
Bitcoin price again slumped below $17,000 after holding upright for some time during the previous trading day. Meanwhile, the Bitcoin (BTC) hash rate has also dropped as the miner continue to struggle as the price is undergoing a massive correction phase. Moreover, the BTC mining difficulty is expected to witness a huge adjustment.
As per the new update released by a popular on-chain data provider, Glassnode, the Bitcoin network has decreased the difficulty by more than 7% which is the largest in the past 12 months.
“The Bitcoin protocol has just decreased mining difficulty by -7.3%, the largest downwards adjustment since July 2021,”
“Given depressed coin prices, rising energy costs, and debt burdens, the mining industry is under extreme stress,”
On the other hand, the Bitcoin hash-ribbon indicator also suggests that the crypto is due for yet another massive downfall.
As seen in the above image, the hash ribbon is closer to getting inverted. Previously, when the hash-ribbons were inverted, the Bitcoin (BTC) price underwent significant price correction. Hence a similar action is speculated presently as the difficulty adjustment appears to be in response to the falling BTC hash rate.
“The difficulty adjustment is in response to falling Bitcoin hash-rate.
This has resulted in yet another inversion of the Hash-ribbons, as the 30DMA dives below the 60DMA.
The last hash-ribbon inversion occurred in early June 2022,”
Moreover, Bitcoin price is displaying a significant variation climbing in and out of the levels at $17,000. Hence the Bitcoin realised cap which shows the net sum of capital inflows and outflows has declined heavily. The capital inflows since May 2021 have been flushed out, signalling a capital reset is underway.
FTX’s Demise Has Pushed Bitcoin Miners To Worst Situations! This Is How BTC Price Will React Next
The crash of the popular crypto exchange FTX has become an embarrassment for the entire crypto space as it failed to build trust among users and provide properly secured infrastructure.
FTX’s demise has undoubtedly thrashed several investors with a loss of billions of dollars and forced miners to give up their mining journey as their profitability has significantly decreased due to the market crash.
It is anticipated that the current crypto winter will have a prolonged effect on the market, extending by several months or even a year, as the remediation will take enough time.
BTC Miners’ Profitability Decreases As The Crypto Winter Intensifies!
Bitcoin miners seem to be in trouble as the crypto winter has not spared them from the impact of FTX’s collapse.
As Bitcoin trades near a vast bearish region of $16K, the mining potential of BTC miners decreases along with reduced profitability.
The margins of Bitcoin miners have been pushed into a compressed area as BTC holdings held by miners have touched a low of 1.826 million BTC, which is worth $30.6 billion.
Moreover, on-chain analyst firm, Glassnode, highlighted that the miner net position change has slipped to 10,972 BTC, the lowest since January 2022.
The firm further noted that Long-Term Holder supply has dropped by 61.5K BTC, registering a non-trivial event.
The BTC hash rate made a sharp decline, forcing miners to liquidate their positions of around 9.5% of the treasury, the steepest fall since 2018.
Another on-chain data provider, CryptoQuant, mentioned that miners exchanged a total of 1300 BTC on 8 November, the day of FTX’s collapse. The FTX’s failure has played a significant role in creating selling pressure in the price chart by BTC miners.
Additionally, Miner Position Index (MPI) has also made a low since May, indicating considerable momentum in BTC outflow by miners with respect to their one-year moving average.
Is It The Final Capitulation For BTC?
The downfall of FTX has become a black eye to the crypto industry as it has barred the market from making green candles in the price chart. The horrific event has trapped the BTC price near its crucial support region with no sign of a reversal.
BTC previously made monthly support at $18K, but a breakout below this has slumped the digital asset hard to the bottom line.
However, BTC tried to recover as it attempted to break its immediate resistance level of $17K following the news of Binance’s introduction of a reserve fund. It failed to hold its price after facing rejection.
Bitcoin price is now at a recovery phase at $16K as it forms a support level and continues to trade above it. Bitcoin is currently trading at $16.5K, which is above the 100-hour simple moving average, and a breakout above its immediate resistance level of $18K may bring a slight hope of a bullish comeback to investors as BTC can aim to trade near its EMA-100 trend line at $20.5K.
However, the RSI-14 still trades at an overselling region of 36-level, which can be a signal of a further downtrend for BTC.
If BTC falls below its Bollinger band’s lower limit of $15.5K, which is a crucial support level for initiating a bearish momentum, BTC price can make a bottom price range of $13K-$14K in the next few weeks.
Is the Last Capitulation Wave Coming? Whales Liquidate Bitcoin While Miners Get Rid of It
Exchange contagion has become a historical tendency that occurs close to the absolute BTC bear market bottom. During the previous bear cycles, it was Mt.GOX, later Bitmex and now FTX. It appears to have become a pattern of let.
The crypto markets are trying very hard to recover very hard from the recent sell-off that led to nearly a drop of 15% to 20%. While the assets are gaining some pace, the possibility of yet another leg down emerges
Bitcoin in the past couple of months has experienced nearly a billion realized loss as whales & miners continue to remain extremely cautious of the current market trends. The BTC whales who have been holding 1000 BTC to 10,000 BTC have either sold or redistributed nearly 140,000 BTC.
The amount of BTC held was worth more than $4.93 million at the times when BTC prices were trading between $20K to $21K. Meanwhile, as the markets turned down, the price began to plunge which in turn ignited a steep drop in the whale holdings. Presently, the holdings have dropped below $4.7 million.
Alongside, the miners also appear to have been extremely cautious as their reserves are slowly getting dried up. At this price, it may be extremely difficult for the miners to mine Bitcoin as they are facing significant losses. Therefore, in the past couple of days, miners have dropped nearly 3000 BTC from their reserves.
The steep decline was recorded ever since the issues with FTX-Alameda Research ignited huge FUD within the markets. Since then, the price of BTC has dropped by 25%, while the miners have flooded the streets with 3000 BTC worth nearly $48 million. Meanwhile, a more descending trend is largely expected that may bring down the entire crypto market to new lows.
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Bitcoin Miners’ Selling Pressure Could Stimulate Bulls for Further Upside Towards $25k
Bitcoin (BTC) price has retracted from trading above $21k, but on-chain data suggest further upside remains at play.
The instrument was exchanging hands around $20,730 during the early Asian and London trading session, down approximately 2.2 per cent in the past 24 hours.
However, statistical data provided by Glassnode shows Bitcoin miners have been selling at unprecedented rates not recorded before 2021.
Historically, data by Glassnode have revealed that whenever there is sustained high selling pressure from Bitcoin miners, the underlying asset price reacts with a bull case.
For instance, there was a prolonged sustained Bitcoin selling pressure from miners during the 2017 bull market.
Additionally, Bitcoin miners sold more coins in 2021, when Bitcoin hit its all-time high of around $69k. On the other hand, Glassnode data shows that Bitcoin price fell in value whenever miners accumulated the asset for long periods.
For instance, in 2020, Bitcoin miners were invoked in a long phase of the positive net position change. Consequently, Bitcoin price reacted with a dip which has come to be referred to as Black Thursday.
The urgent and persistent question is whether the Bitcoin price will continue with the past two weeks’ bull case scenario. Most importantly, Bitcoin price could invalidate the historical data and dip further in the coming weeks, as observed back in 2015.
Bitcoin and Crypto Market Outlook
Bitcoin has remained in the top position since its inception despite the increasing competition in the altcoins market. Arguably, the store of value has made Bitcoin more popular with retail, institutional investors and, recently, global nations.
As such, miners have more options to offload their assets with minimal volatility. Moreover, as the Bitcoin market matures, less volatility is recorded compared to low-cap crypto assets.
Notably, Glassnode data indicates that transfer volume from Bitcoin miners to all cryptocurrency exchanges has declined in 2022 compared to prior years.
While Bitcoin transfer volume to all cryptocurrency exchanges from miners has dwindled in the past year, the underlying asset value has fallen. Nonetheless, the number of active Bitcoin addresses has exponentially increased in the past few years.
According to on-chain statistical data from Tokenview, the total number of active Bitcoin addresses currently stands at 49,873,427.
Thereby increasing the overall Bitcoin demand while the miners reduce their general sell pressures and become long-term holders.
Meanwhile, the Bitcoin mining hashrate currently stands at 264.12 (EH/s), with the total difficulty at around 36.77 (T).
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Bitcoin (BTC) Price Is Up For Another Sell-off As Miners Revenue Drops
The world’s first cryptocurrency, Bitcoin has been facing a severe sell-off between $19,000 and 19,500. The flagship currency is striving to get back its long-lost $20,000 trading zone.
Currently, Bitcoin is selling at $19,340 after a slight upward movement of 0.05% in the last 24hrs.
Meanwhile, it observed that hash rate is rising, indicating towards Bitcoin miners add more computational power so that new blocks are added. However, this in turn will add up energy costs at an equal rate because of which Bitcoin miners are receiving minimal mining revenue.
Bitcoin’s Another Sell-off
This phenomenon by Bitcoin miners is expected to attract another sell-off. Glassnode, an on-chain data firm, claims that the Bitcoin hash rate has hit an all-time low of $66,500 per Exahash. This simply says that Bitcoin miners are not in good profit with the hash power they apply.
The same was reported by Arcane Research where the firm published a report claiming that miner revenue has dropped by 81% from October 2021 high. On the other hand, most of the miners’ gross margin has plunged from 80%-90% to 30%-40%.
On the flip side, Bitcoin long-term holders are depicting a positive stance. Crypto analyst Will Clemente refers to Glassnode data and explains that 78% of Bitcoin Supply has not moved in the last 6 months. He claims this is a remarkable movement amidst such negative macroeconomic events.
Also in a recent conviction, Mike McGlone claimed that Bitcoin is stepping into a maturation stage. By this he means that the King currency is expected to rise even when the Fed is expected to continue the interest rate hike.
However, now it’s important to see whether Bitcoin will be affected by Bitcoin miners’ low revenue and long-term holders’ positive stance.
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Bitcoin Miners Might Soon Liquidate if BTC Price Continue To Slump
The miner’s profitability could be harmed by the rising cost of mining blocks. Since the price of Bitcoin has been falling over the course of the year, from $46,000 to roughly $19,300, analysts estimated that the difficulty hike would reduce the miners’ profits by about 20%.
Leading analytics company Glassnode issues a dire warning about a particular group of Bitcoin owners who collectively possess nearly $1.5 billion worth of BTC.
According to Glassnode, the hash rate for Bitcoin, which gauges the network’s processing power, is at an all-time high.
While an increase in network hash power puts BTC miners in a vulnerable financial position, a greater hash rate suggests a more resilient network that is more secure against an attacker.
“Bitcoin Difficulty has adjusted to a new all-time high due to a rapid increase in network hash power. This increases the BTC cost of production, and puts additional stress on miners.”
The analytics company estimates that it will now cost $19,300 to manufacture one Bitcoin through mining, which is more than the currency’s current value of $19,067. According to Glassnode, the combination of rising production costs and a low price for BTC indicates that miners face a significant danger of capitulation.
The Difficulty Ribbon Compression is an on-chain indicator that employs simple moving averages of the Bitcoin network difficulty to assess the impact of miner selling pressure on the king cryptocurrency’s price. The Puell Multiple is a statistic that examines BTC miner earnings.
Glassnode further emphasizes that BTC miners have been actively selling off their stock in recent months.
Approximately 78,200 Bitcoins ($1.49 billion) are now held by bitcoin miners in their treasuries, and this amount has been rising overall since mid-2019.
The deceleration in miner treasury growth over the past several months has been the most dramatic in the recent three years.
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Bitcoin Mining Difficulty Reached An All-Time High, Miners Are Under Pressure
The post Bitcoin Mining Difficulty Reached An All-Time High, Miners Are Under Pressure appeared first on Coinpedia Fintech News
The difficulty indicator increased by 13.55% since the last adjustment around two weeks ago, the greatest increase since May 2021.
As per the data collected from btc.com, the current difficulty adjustment is in, and it now takes 35.6 trillion hashes to generate one bitcoin (BTC), up a massive 13.55% from the previous estimate.
The network rate now stands at 257 million TH/s (terra hashes per second), a huge increase over the 140 million TH/s it had at this time last year.
For bitcoin miners, who are already struggling due to low bitcoin prices and rising energy costs, the rising difficulty presents an even grimmer picture.
Bitcoin Mining Difficulty Reached An All-Time High, Miners Are Under Pressure
The post Bitcoin Mining Difficulty Reached An All-Time High, Miners Are Under Pressure appeared first on Coinpedia Fintech News
The difficulty indicator increased by 13.55% since the last adjustment around two weeks ago, the greatest increase since May 2021.
As per the data collected from btc.com, the current difficulty adjustment is in, and it now takes 35.6 trillion hashes to generate one bitcoin (BTC), up a massive 13.55% from the previous estimate.
The network rate now stands at 257 million TH/s (terra hashes per second), a huge increase over the 140 million TH/s it had at this time last year.
For bitcoin miners, who are already struggling due to low bitcoin prices and rising energy costs, a rising difficulty presents an even grimmer picture.
Bitcoin Hash Rate Reaches Highs Despite Miners Being in Loss, Is it an Indication of BTC Price Rally?
Bitcoin price continues to hover around $20,000, failing to rise beyond the crucial resistance levels of around $20,800. Amidst the sceptical market conditions, the BTC mining difficulty, measured by the hash rate, is reaching new highs. On the contrary, the miners continue to mine BTC at a loss as the revenue fails to compensate for the cost of production.
Recently, the hash rate, which had dropped more than 50% following the unfamous May 2022 crash, rebounded finely and rose high enough to mark new records.
While the mining difficulty has increased, the miner’s revenue has dropped significantly. The revenue has reached a peak at $74.418 million while BTC price marked its highs at $69,000 back in October 2021. Ever since then, the revenue has dropped & reached a low of $13.92 million, presently standing at $20.49 million.
It is a known fact that the miner’s revenue is halved every 4 years, marking the Bitcoin halving event to curb inflation. Presently, BTC rewards have dropped heavily to an all-time low of 4.06 BTC per Exahash. Hence, the revenue in USD equates to $78,000 to $88,000 per Exahash per day, which has dropped back to the October 2020 levels.
The revenue back in October 2020 dropped, marking the 2020 halving event wherein BTC prices were around $10,000. However, the mining difficulty has increased by nearly 66% since then while the revenue remains the same. Despite this, the miners continued to hold around 78.4K BTC in their treasuries. Therefore, they are signalling the possibility of a remarkable bull rally ahead.