 ▲ Bitcoin mining/Source: ChatGPT generated image |
Recently, price volatility has been increasing in the Bitcoin (BTC) market as selling pressure from miners increases.
According to Cointelegraph, James Check, Glassnode's lead on-chain analyst, said miners are struggling, saying "BTC mining generation times are about 14 seconds slower than usual," but it is not yet a full-blown bear market-like surrender. analyzed.
He added that it is likely that miners will sell some of their BTC holdings, but he does not expect a large sale.
Meanwhile, cryptocurrency on-chain analyst Willy Woo predicted that Bitcoin prices would rise again once hashrate recovers after inefficient miners surrender.
“We need to look at on-chain data because it takes time for miners to surrender after the halving,” he said, noting that similar patterns were observed in the past in 2017 and 2020.
In fact, Cointelegraph cited data from Into the Block and reported that “the amount of BTC held by Bitcoin miners has fallen to the lowest level since February 2010.” This is a decrease of approximately 50,000 BTC compared to the beginning of the year.
Additionally, the hash rate and difficulty are expected to drop as some miners reduce operations due to the heat wave, and this situation is expected to ease competition.
CoinDesk said, “The mining industry is under pressure on margins due to a 50% reduction in block mining rewards due to halving and the hash rate hitting an all-time high.”
In this situation, there is increasing interest in how long miners' selling activities will continue and when Bitcoin will resume its upward trend.
Experts analyze that whether BTC can maintain the $65,000 support level will be an important inflection point. Amid market uncertainty, investors are required to take a cautious approach.
