Miners forced to sell Bitcoin as rising costs squeeze profitability

Minors have no choice but to sell more bitcoin during the current slowdown, which added to the sale pressure of the recent disappointment that the government will not buy new bitcoin for the reserve, as well as the macroeconomic uncertainty due to the prices.

According to Crypto -computer analyst Tech TechThe price of bitcoin (BTC) It’s hard to bounce back from his current because (among other things) of the sales pressure of minors. The analyst stressed that the BTC price fell $ 77,700, there was a significant increase in the number of minors moving their BTC to trade.

Minors are forced sellers, which means that they must sell their BTC to pay the bills, which affects the liquidity of the market. In addition, the fact that minors sell more bitcoin even when the price is low suggests that they undergo financial pressure, according to the analyst. The likely reason for this is that the average cost of bitcoin extraction has been regularly increasing.

If enough people buy bitcoin unloaded by minors, the price could stabilize and potentially recover. On the other hand, if the minors continue to sell but the demand does not resume, the price of BTC will probably drop again, all the other things being equal elsewhere.

Currently, this last scenario seems more likely, because analysts expect Bitcoin to undergo a deeper retirement towards the range of $ 70,000. For example, Arthur Hayes recently said that “BTC is probably in the background around $ 70,000”, but stressed that a 36% correction of its summit of all time $ 110,000 is normal on a bull market.