Bitcoin miners face worst moment in seven years

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Bitcoin miners are selling more aggressively than at any time in the last seven years, according to Charles Edwards, founder of Capriole Investments.

“If the price doesn’t go up soon, we’re going to see a lot of Bitcoin miners out of business”, Edwards said. “It’s a bloodbath of Bitcoin miners.”

He created a selling pressure index of Bitcoin miners, which increased 400% on Monday, for 3,

, from just 0,44.

It’s a Bitcoin miner bloodbath.

Most aggressive miner selling in almost 7 years now.

Up 400% in just 3 weeks!

If price doesn’t go up soon, we are going to see a lot of Bitcoin miners out of business.

— Charles Edwards (@caprioleio) November 900 ,

The higher the index, the more miners are selling than normal, currently reaching levels of 2016.

The cost to mine one bitcoin is currently over priced of bitcoin, a situation that continues for the fifth month, with a further deterioration at the beginning of this month, when the price fell from US$ 28. to US$ 000.256.

The miners, therefore, may be approaching the stage where their boxes are depleted and its bitcoin reserves are starting to run out.

Iris Energy, an Australian bitcoin miner, is the latest to reveal who may be unable to meet their debt obligations.

This follows a similar notice of Core Scientific, a much larger mining company, which last month declared that it was at default risk.

Bitcoin hashrate has dropped slightly recently from
exahashes, an all-time record, for 256.

Different miners, however, have different cost bases, with Edwards estimating such cost in a range between US$ 16.2022 and US$ 28. .

Bitcoin falling

The price of Bitcoin keeps falling, which could indicate that all miners are operating without profit unless they have free energy through investments in hydropower o u through “gatos”.

Once these inefficiencies are eliminated by higher cost miners, going bankrupt or by shutting down their equipment, selling pressure should ease as costs come down for other miners.

A chart shared by Glassnode highlighted how much profitability of Bitcoin mining has declined over the years as the network’s hash rate surged to new all-time highs amid an institutional push to open up mining operations.

#Bitcoin miner Hash Price has plunged to a new all-time low of $58.3k per Exahash per day.

With $BTC prices now down over

% from the peak, the mining industry remains under immense pressure.

Live Dashboard: /z


— glassnode (@glassnode) November 18,

Panic Selling

Eventual equilibrium is then reached , which many thought was $ 000.000, until the collapse of FTX.

This disaster may have hit the sentiments of miners, which may explain the mass selling as they may have thought that bitcoin would drop further.

Instead, Bitcoin has recovered slightly, with the digital currency trying to find balance and hold its own as miners capitulate.

Bitcoin miners’ increased sales therefore exacerbated the weakness in the Bitcoin price as they looked to offload their holdings quickly before the price dropped further more amid the growing contagion of the FTX meltdown.

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