Bitcoin Bloodbath: Miners Sell Most Aggressively in the Last 7 Years
Bitcoin miners have been affected by the recent crash in bitcoin’s price. They are forced to sell to pay their expenses.
Over the past three weeks, Bitcoin miners have seen their selling pressure increase by 400%. This indicator has reached new heights, which were not seen since the bottom in the 2015 cycle, almost 7 years ago.
Charles Edwards, founder of Capriole Investments (a quantitative Bitcoin and digital assets fund), took to Twitter to share the pain that the BTC mining community is experiencing.
Edwards presented charts that showed the Bitcoin (BTC), price, mining expenses (log scales), as well as the amount of Bitcoins (BTC), miners are selling. It seems that the entire sector is having a hard time.
He stated that if Bitcoin’s price does not rise in the next weeks, many miners will be forced to stop operations because of huge losses.
He believes that mine-and–hodl is not a viable strategy for Bitcoin miners. Edward believes that the current situation is due to the “never selling” attitude of miners.
“Miners are suffering the consequences of the “never sell” arrogance that was widespread six months ago. He says that you must manage (trade) your Bitcoin position in this market constantly.
This is not sustainable. As a Bitcoin miner, mine-and-hodl is not an option. Miners are suffering the consequences of the “never-selling” arrogance that was widespread six months ago.
You must manage (trade) your Bitcoin position in this market constantly.
— Charles Edwards (@caprioleio November 21, 2022
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This difficult period also means that Bitcoin mining cannot be considered “passive income”. Miners need to reevaluate their strategies in order to avoid bankruptcy.
Charles Edwards reported earlier in the month that Bitcoin (BTC), based on the Energy Value Model, appeared to be severely oversold.
According to a report, Iris Energy, an Australian mining company, had to unplug its hardware because it had failed to pay its loan due insufficient cash flow. This makes the sector’s distress even more apparent. It will be dealt with in the coming weeks.
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