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.
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. pic.twitter.com/4ePh0TIPmZ
— Charles Edwards (@caprioleio) November 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 data, 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. Reports revealed that energy costs across Europe nearly doubled compared to a year ago.
#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 76% from the peak, the mining industry remains under immense pressure.
Live Dashboard: https://t.co/64jyX7mRzj pic.twitter.com/z692xIFU7k
— glassnode (@glassnode) November 18, 2022
Glassnode tweeted on Nov. 18 that miner 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…
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