The continued market crash caused by the FTX crash has not left Bitcoin (BTC) miners unscathed. The crypto market is seeing the biggest BTC miner selling pressure since January 2021.
Bitcoin miners sell their BTC
cryptocoin.com As you follow, the FTX crash took the entire market seriously. The continued market crash caused by this dramatic crash has also dealt a heavy blow to Bitcoin miners. The market has seen the biggest one-day miner selling pressure since January 2021. Crypto analyst Andjela Radmilac analyzes on-chain data and comes to the following conclusions. According to the data, Bitcoin selling pressure shows no signs of stopping.
It is possible to see long-term selling pressure from miners until the average hash price starts to decrease. In November 2022, the average hash price reached $0.05. The current price of Bitcoin is around $ 16,400. This makes mining unprofitable not only for small miners at the border, but also for large operations.
The arrival of tens of thousands of ASIC miners last year turned even the largest mining operations into the red. However, few people expected such a sharp increase in the hash price. At around $9,000 per machine, the latest Bitmain S19Pro ASIC miner has a payback period of 1,500 days at an average hash price of $0.06.
Table showing Bitcoin mining statistics for November 2022Falling price does not cover costs
This increase in mining costs and a decrease in profitability have pushed miners to sell their Bitcoin holdings. There has been a vertical drop in the balance in miner wallets since the beginning of November. Thus, it reached the lowest level recorded in January 2021.
Chart showing Bitcoin balance in miner wallets from January 2021 to November 2022 / Source: GlassnodeThe net position change in miner holdings is perfectly correlated with the vertical drop in Bitcoin price. As energy prices are expected to rise throughout the winter and the ongoing bear market is in sight, the wave of unprofitable miners is likely to shut down.
Chart showing net position change for Bitcoin miners / Source: GlassnodeThe leading crypto Bitcoin was trading at $16,372, down 2.59% on a daily basis at press time. With the US CPI coming in below expectations before the FTX collapse, BTC managed to climb above $ 21 thousand. However, it took a heavy hit after the FTX incident, falling to $15,000. Now he is struggling to protect $16,000.
