Will Bitcoin Fall Further? BTC miners face the BTC hash price ATH of $66,500 per Exahash
- As Bitcoin miners operate on paper-thin margins, there is a greater possibility of a BTC sell-off in the coming days.
- On the other hand, Bitcoin whales have shown conviction with strong accumulation last week.
The world’s largest cryptocurrency Bitcoin (BTC) has held steady near $19,200 in recent weeks. While BTC tried to make some breakouts above the $20,000 level, it could not be sustained there for long.
However, Bitcoin miners have once again faced some challenges with the increasing hash power. The Bitcoin hashrate, i.e. the computational power required to add new BTC to the Bitcoin blockchain, has been on the rise. Note that this increases the cost of production and thus puts extra stress on the Bitcoin miners.
On-chain data provider Glassnode recently reported that the Bitcoin hash price has reached a new all-time low. Hashprice is a Bitcoin mining value that represents the miner’s earnings per terahash basis. It notes:
The #Bitcoin The hash price has reached a low of $66,500 per Exahash. This means $BTC miners earn the smallest reward relative to hash power used in history, likely putting the industry under extreme revenue stress.
Item: Glass node
This clearly shows that mining BTC at the current price leaves Bitcoin miners with paper thin margins. Thus, it makes it increasingly difficult to hold on to their existing BTC supply and increase the chance of selling. If the BTC miners once again go on a selling spree, we may see large price corrections in Bitcoin continue.
Earlier this year, some of the top Bitcoin miners sold huge amounts to cover their operating costs. This was in the period May-June when the BTC price was in free fall. A repeat of the same could likely bring Bitcoin down to $14,000.
Bitcoin technical charts and why
As of press time, Bitcoin is trading up 1.20 percent in the last 24 hours at a price of $19,370 and a market cap of $372 billion. Based on the technical chart, popular cryptoanalyst Michael Van de Poppe explains: “Bitcoin needs to break resistance at $19.6K and then we start the run towards $20.7K and potentially higher. The dollar and yields are showing some weakness today.”
On the other hand, Bitcoin whales and long-term holders have shown great conviction. Last week, CEO of CryptoQuant, Ki Young Ju, stated that whales have accumulated BTC in huge amounts on Binance. He noted:
Whales gather $BTC in #Binance. Since #Bitcoin the price reached the $20k level, @Binance spot trading volume dominance skyrocketed and is now 84%. The second largest is Coinbase, 9%. Not sure if these whales are institutions using prime brokers or crypto-and-is for now.
Last week, it was reported that more than 40,000 Bitcoins moved off the exchanges in a huge institutional pile-up. On the other hand, Bitcoin HODLers are showing their diamond hands and holding onto the supply.
Popular crypto trader Will Clemente noted: “A new all-time high 78% of Bitcoin supply hasn’t moved in at least 6 months. Quite remarkable in the face of the worst macroeconomic backdrop in recent history, geopolitical uncertainty and fears of WW3. That’s a bunch of seriously doomed HODLers out there”.
