The Miner inflow MA7 data indicates bitcoin miners are yet to start selling their holdings indicating we haven’t reached a potential top this bull cycle. Bitcoin miner’s trading activity acts as an important market indicator as it affects their mining cost.
Crypto market blood bath this week saw more than $500 billion getting wiped off the market and top cryptocurrencies such as Bitcoin and Ethereum also lost more than 50% of their value from their ATH. Bitcoin fell to a new 3-month low of $30,681 on Wednesday before making a significant recovery of more than $10,000 within 24-hours. The on-chain data indicates the ongoing panic selling is primarily led by new buyers and benefited by Whales who sold more than 50,000 BTC over the past week and later bought the dip with a collective institutional purchase of 34,000 BTC.
The current Bitcoin sell-off is being attributed to a number of FUDs, the most recent being China’s crackdown on Bitcoin mining activities. Such warnings by the Chinese government are not new and they have issued many from time to time, however, industry insiders suggest that this time around the focus on carbon neutrality could have a major part to play in the crackdown.
How Miners Impact Bitcoin Price?
The growing mining difficulty has made Bitcoin mining an increasingly expensive business as any c0mpetetive mining machines to make a good profit can cost upwards of $1,500, on top of that these machines are required to run for 24-hours a day with high energy consumption, making Bitcoin mining a costly affair. Thus in order for miners to continue offering hash power input, the price of Bitcoin must remain higher than the cost of operations.
Last year in March, when Bitcoin price fell to sub-$4k levels, there was fear that the Bitcoin network’s hash power input might suffer dearly as many miners would have to discontinue owing to the low price of BTC. With every halving, mining becomes more expensive as there is half the Bitcoin to mine with almost the same number of miners as before.
- Breaking: Do Kwon Releases Another LUNA Revival Plan
- Just-In: Grayscale Adds Five New Tokens To Its Investment Products
- Another Stablecoin Follows LUNA $UST, Crashes Within Hours
- PlanB: Bitcoin (BTC) Is Creating A Bottom For The Next Bull Market
- Shiba Inu Holders Increase Amid Market Crash, But There’s A Catch
- LUNA Crash: South Korea Toughens Up Investigations Over Terra (LUNA) Crisis
- Avalanche (AVAX) Slumps 5% In Minutes On Fears Of Terra Dump
- Breaking: Luna Foundation Guard Reserves Decimated By Terra Crash
- Breaking: Luna Foundation Guard Member Says Terra Reserves En Route
- Just-In: El Salvador To Discuss Bitcoin Adoption With 44 Countries
- Ethereum Price Analysis: ETH Price Erases Recovery Gains Towards $2,000
- Decentraland Price Analysis: MANA Price Sinks 10%; Are You Still Holding?
- Bitcoin Price Analysis: BTC Price Under Bear’s Spell; Is $26,000 On Cards Again?
- ETH Price Analysis: Consolidation Range Soon To Launch ETH Above $2250
- Bitcoin Price Analysis: Triangle Breakout Sets BTC Rally To $32000 Mark
- LUNA Price Analysis: Opportunity to Buy Cheap or A Bull Trap?
- Decentraland Price Analysis: MANA Price Prepares For 60% Gains; Are You Buying?
- SOL Price Analysis: Is $60.0 Around The Corner On The 4-hour Chart?
- DOGE Price Analysis: Wedge Pattern Retest Phase Warns $0.08 Fallout
- Ripple Price Analysis: XRP Price Remains Pressured below $0.50; Is Selling A Good Choice?