thecoinrepublic.com
- Crypto miners have mobilized more than $300 worth of Bitcoin.
- Miners are offloading the crowned asset in bulk during the past few weeks.
- Bitcoin was currently trading at the market value of 22,006.05.
Something is Brewing Among Bitcoin Miners
As per the latest data from a data aggregator, CryptoQuant, miners are exiting their current positions. They have transferred 14,000 Bitcoin worth $300 Million in just a single day during the last week. Phenomenon like this is dubbed as miner capitulation. It means the miners are tying up their laces before they sell the digital assets to write off their expenses.
At the time of publishing, Bitcoin was trading at the market price of $22,089.45, witnessing a positive correction of 10.99% during the past 24 hours. The market turbulence has taken down the crowned crypto asset to the painful lows. It is currently down by around 70% in contrast to its all time high of about $69.000 back in November 2021.
Lower value has affected bitcoin miners. They are required to set up high-end equipment to mine the top digital currency. This is not the only reason they are preparing themselves to sell it. Groundbreaking energy costs, rising inflation amid the Russian invasion on Ukrainian lands are among many reasons pushing the miners on the edge.
Miners Are Required To Pay Bills Too
Core Scientific is among the biggest openly traded cryptocurrency mining organizations in the United States. It sold almost all of their Bitcoin holdings during June 2021. While talking to CNBC the firm’s CEO Mike Levitt stated that miners are required to pay bills similar to other persisting businesses. He believes that Bitcoin mining can still generate profits but the margin will reduce given the circumstances.
Levitt still thinks highly of Bitcoin mining. He believes there is massive operation leverage in the activity. But he also believes that productivity per unit of power matters, and with lower prices mining operations like Core Scientific are less likely to face competition from minor operations and hobbyists.
As miners with lower efficiency leave the network and international hashrate declines, the persisting machines will deliver more productivity.