MEXCBitcoin Bloodbath: Miners Start Selling Most Aggressively In The Last 7 Years
The recent crash in the price of bitcoin has distressed bitcoin miners. They are compelled to sell in order to cover their expenses.
In the past three weeks, Bitcoin (BTC) miners have increased their selling pressure by 400%. This indicator reached new highs, not seen since the bottom of the 2015 cycle, nearly 7 years ago.
Charles Edwards, the founder of Capriole Investments, a quantitative Bitcoin and digital asset fund, took to Twitter to reveal the distress that the BTC mining fraternity is going through.
Edwards presented charts showing the Bitcoin (BTC) price, mining expenses (log scales), and the amount of Bitcoins (BTC) miners are selling. It appears that the entire segment is having a difficult time.
Miner’s Distress
According to him, if the price of Bitcoin does not improve in the coming weeks, many miners would be compelled to cease operations due to huge losses.
He argues that mine-and-hodl is not a sustainable strategy for Bitcoin miners. Edward holds the “never selling” attitude of miners responsible for the current situation.
“Miners are paying the consequences of the “never selling” arrogance widespread just 6 months ago. You need to manage (trade) your Bitcoin position constantly in this market” he adds.
What we are seeing is not sustainable. Mine-and-hodl is not a viable strategy as a Bitcoin miner. Miners are paying the consequences of the "never selling" arrogance widespread just 6 months ago.
You need to manage (trade) your Bitcoin position constantly in this market.
— Charles Edwards (@caprioleio) November 21, 2022
Also Read: Is FTX Crash An End Of Crypto? Here’s How A Multi Billion Dollar Scam Unfolded
Furthermore, this difficult period indicates that Bitcoin mining can no longer be deemed “passive income.” Miners should re-evaluate their strategies to avoid becoming bankrupt.
Charles Edwards reported earlier this month that Bitcoin (BTC) appeared to be severely oversold based on the Energy Value Model.
According to a report, an Australian mining firm, Iris Energy, had to unplug hardware as it defaulted on its loan due to insufficient cash flow. This makes the distress more evident, which can grapple the sector in coming weeks.
Also Read: Genesis Says It Has No Immediate Plans To Declare Bankruptcy, Seeks Consensual Resolution
- Trump Insider Whale Reloads $430M Long on BTC, ETH Ahead of Tomorrow’s Fed Rate Cut Decision
- Breaking: $2.6B Western Union Announces Plans for Solana-Powered Stablecoin by 2026
- Trump Media Launches Polymarket Rival, Eyes $9B Prediction Market with Crypto.com
- Bitget Lists Common Token, Launchpool Offers 36M COMMON in Rewards
- Coinbase Prime Taps Figment to Boost Institutional Staking on Solana, Cardano, and Sui
- Pi Network Patterns Point to More Gains Despite Manipulation Claims
- HBAR Price Poised to Hit $0.30 as Canary Capital ETF Starts Trading.
- Will Solana Price Rally to $300 as Bitwise Launches $BSOL ETF?
- XRP Price Chart Patterns Hint at 2017-Style Breakout as Evernorth Acquires $1B XRP Ahead of Nasdaq Debut
- Cardano Price Eyes 80% Rally as x402 Upgrade Sparks Hope for AI Payment Expansion
- Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
