Bitcoin [BTC] miners are feeling the heat with high selling pressure, this could ease their woes
-Bitcoin stamps can play a key role in attracting users to the Bitcoin network.
– Miners saw the pressure as the difficulty of mining continued to increase.
According to data provided by Messari, on April 14, Bitcoin Stamps (Secure Tradeable Art Maintained Securely) surpassed Ordinals in terms of growth rate.
A new #bitcoin NFTs have emerged called Bitcoin Stamps.
Stamps take a different approach to embedding data, targeting transaction output instead of the witness part (used for Ordinal inscriptions) of the transaction, which guarantees that it cannot be clipped by node operators. pic.twitter.com/Yw606bAXl9
— Messari (@MessariCrypto) 14 April 2023
Read Bitcoins [BTC] Price prediction 2023-2024
For the uninitiated, Bitcoin [BTC] Stamps have emerged as an alternative way to store data on Bitcoin. Compared to Ordinals, which store image data in printable transaction witness data, Bitcoin Stamps store it directly in consumable transaction output.
The NFT market of the Bitcoin network was also positively affected by interest in both stamps and inscriptions. This was evident from the increasing number of NFT trades on the network over the past week.
Source: Sentiment
BTC miners in trouble
Although an active interest in the Bitcoin network could be a positive development for BTC, the miners still faced hardship.
According to analyst CryptoVizArt, the Puell Multiple, an indicator that measures miners’ earnings against their average earnings over the previous year, showed that miners earned less than 12% of their average annual earnings. This was due to the increasing hashrate of Bitcoin, which led to an increase in the difficulty of the network.
🧵/5. By adjusting the degree of difficulty, the Puell Multiple can show a more realistic estimate of the decline in miners’ income. Research by the Adjusted-Puell Multiple shows that miners still earn 12% less than their annual average income. pic.twitter.com/uMxTx0QNJX
— CryptoVizArt.₿ | ZiCast 🎙 (@CryptoVizArt) 13 April 2023
The ongoing bear market also put significant pressure on miners’ incomes with price declines and increased difficulties. If the difficulty remains unchanged, breaking the $33.6k mark would indicate the conclusion of the bear market for miners, according to CryptoVizArt.
Another indicator of high selling pressure was the rising MVRV ratio for Bitcoin. A high MVRV ratio usually indicates that an asset has been overbought and many addresses have the potential to sell their holdings at a profit.
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However, the Long/Short indicator was also positive. This suggested that most of these addresses were long-term owners who are unlikely to sell despite profits.
Source: Sentiment
Traders, on the other hand, continued to be slightly bearish with their decisions, as shown by Greeks.live’s data, according to which there were more puts than calls for BTC. Around 30,500 BTC options were about to expire, with a Put-Call Ratio of 0.99, with a maximum pain point of $29,000.
