Bitcoin: Can Miners Survive This Double-edged Battle?
Bitcoin [BTC] miners have been faced with harsh realities lately. The worst part is that it doesn’t seem to be getting any easier as these difficulties seem too strong to handle.
In accordance CryptoQuantBTC miners have faced the hurdle of not selling their holdings for crumbs. However, the declining state of the Bitcoin hash price has left most miners with no choice but to succumb to the selling pressure.
The hash price, the market value per hashing ability, is the same that serves as income for these miners. Unfortunately, CryptoQuant noted that revenues were approaching their lowest point on record.
Oh! Save the kings
Based on the report, over 5,000 BTC moved from mining pools to exchanges this week. All this happened before BTC fell below $19,000. Despite the uptick in trading above $20,000, CryptoQuant pointed out that selling pressure could skyrocket in the coming days. With this situation, it may be possible that miners may follow a similar action that led sell most of their rewards in June.
While assessing the analytics platform’s opinion, the miners’ calculations confirmed it to be true. According to data from the same platform, the miners’ outflow had increased by 2.22% in the last 24 hours.
However, the output from the mining pool did not start on September 8. According to CryptoQuant, the average mining started increasing on September 6.
At the start date it was 4.41. At press time it had increased to 10.37.
Source: CryptoQuant
In addition, a look at Glassnode knew that miners have not been so profitable lately. As such, making such a decision to continue selling was almost inevitable. The miners’ earnings, which were 1,060 BTC as of September 4, had fallen to 80.85 at the time of writing.
Source: Glassnode
However, the CryptoQuant report did not single out miners as the only ones guilty of selling. BTC whales have also been pumping their holdings into exchanges in an attempt to sell. Just like the miners, there was the possibility of a continued trend.
Be warned
Interestingly, BTC miners don’t just have a headache to cure. This is because miners in the US have been issued a hedge warning. According to the White House report, miners may have to find a permanent solution to their energy consumption or risk facing a ban.
The decision may have been expected, especially as crypto mining had increased in the country. But finding a means to ensure that the green energy proposed for mining resolves the dispute may be the most critical concern for miners.
