Bitcoin Miners To Capitulate Again? Will This Hurt BTC?
Decline in Bitcoin prices has created a tough enivornment for the BTC miners to carry on wtih the proccess.
Bitcoin Price Prediction News: Bitcoin price is struggling to recover amid the increased selling pressure and volatility in the market. The declining BTC price has also led to an all time high (ATH) mining difficulty for Bitcoin miners. However, experts have suggested that miners might capitulate again.
A report by Cryptoquant suggests that the Bitcoin mining difficulty is very high for the miner. This directly means that the costs are getting higher and the current situation is not suitable for doing business. This is the main reason why miners do not work in full force.
It added that this is the first time in months that the Bitcoin hash rate is dumping hard. This is likely a signal that miners are capitulating. However, this also signals that the bottom is near.
However, increased inflation and declining Bitcoin price have created such an environment for the miners. Meanwhile, the current results might not fall in line with the previous results. Positive mining difficulty adjustment can help miners plan for the next adjustment which might happen around 6th December.
Bitcoin prices have dropped by a massive 23% in the last 30 days. Bitcoin price is trading at an average price of $16,219, at the press time. However, its 24 hour trading volume is up by 31% to stand at $24.9 billion.
Glassnode reported that Bitcoin miners are distributing over 135% of their mined coins. This suggests that miners are dipping into their 78K BTC strong treasuries.
As the FTX contagion expands, the mining industry has become another sector of concern in the crypto market. Mining revenue is witnessing a huge revenue reduction. The production cost has gone up by 68% while Bitcoin price is down by 76% over the last year.
Miner’s Bitcoin balance currently stands at around 78K which is equal to more than $1.2 billion, as per BTC price.