Bitcoin (BTC) Miners Started ‘Most Aggressive Selling’ In Seven Years: Analyst

Analyst Charles Edwards, founder of Capriole Investments quantitative fund and author of many insightful crypto-economic models, reveals that Bitcoin (BTC) miners have not sold as aggressively since Q4, 2015.

“Bitcoin miner bloodbath”: Charles Edwards on miner-driven BTC sale

Mr. Edwards shared the charts of the Bitcoin (BTC) price, mining expenses (log scales) and the amount of Bitcoins (BTC) miners are offering for sale. Looks like the entire segment is going through some rough days.

It’s a Bitcoin miner massacre.

Most aggressive miner selling for almost 7 years now.
Up 400% in just 3 weeks!

If the price doesn’t go up soon, we’re going to see a lot of Bitcoin miners out of business. pic.twitter.com/4ePh0TIPmZ

— Charles Edwards (@caprioleio) 21 November 2022

In the past three weeks, since the first rumors of FTX/Alameda’s insolvency, Bitcoin (BTC) miners increased their selling pressure by 400%. This metric increased to levels not seen since the bottom of the 2015 cycle.

Mr. Edwards is confident that if BTC’s price fails to recover in the coming weeks, many miners will be forced to cease operations due to heavy losses.

This painful period also signals that BTC mining can no longer be considered “passive income”. Miners should rethink their strategies to avoid finding themselves underwater:

What we see is not sustainable. Mine-and-hodl is not a viable strategy as a Bitcoin miner. Miners are paying the consequences of the “never-sell” arrogance that was prevalent just 6 months ago. You have to manage (trade) your Bitcoin position constantly in this market.

Earlier this month, Charles Edwards revealed that Bitcoin (BTC) looked terribly oversold based on the Energy Value Model.

Sales are accelerating at hashrate at breakneck speed: Possible reasons

Meanwhile, as covered by U.Today earlier, both difficulty and hashrate, two key metrics of Bitcoin (BTC) mining activity, set new all-time highs in mid-November.

Yesterday’s adjustment pushed Bitcoin (BTC) mining difficulty above 36.95T, while the hash rate almost reached the impressive level of 300 EH/s.

Commenting on Mr. Edwards’ concerns, anonymous analyst @BTC_Archive highlighted that such an imbalance between BTC mining activity and profits should be attributed to the whale’s secret energy sources:

The only way I can explain the increasing hash rate when the price is dumped is that some very large players with access to extremely cheap energy are getting into the mining game on a large scale.

Today, November 22, 2022, Bitcoin (BTC) price has re-visited its two-year low; the orange coin now changes hands at $15,700.