Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Bitcoin miners are aggressively liquidating their reserves in an attempt to bolster finances against a historic collapse in revenue efficiency.
Data from CryptoQuant reveals that miners have moved more than 30,000 bitcoins, worth about $2.6 billion, from their wallets since November 21.
Sponsored
Sponsored
Bitcoin mining faces a survival phase as reserves fall to an all-time low
As a result, the large migration reduced the total reserves of miners to 1,803 million BTC, the lowest level on record.
This process immediately indicates that the operators They move from accumulation to survival, They are forced to liquidate hard assets to cover operating expenses as cash flows dry up.
The incentive for this group sale is A sharp deterioration in the mining economy.
According to data from the Hashrate Index, the Bitcoin hash price has fallen more than 50% in recent weeks to a low of $34.49 per petahash per second.
The retail price is the industry standard for tracking daily revenue per unit of computing power.
Sponsored
Sponsored
For context, even during China Mining Ban 2021 And in the depths of the bear market of 2022, this indicator rarely fell below $50.
Current levels indicate that the cost of generating new Bitcoin now exceeds the market price of the asset, for all but the most efficient operators.
Adding to the pain is the insurmountable gap between the price and the difficulty of the network. while Bitcoin corrected by 22% In the past month to trade close to $ 86,075, the general computer power of the network refused to leave.
Remain The global hashrate is increasing More than one zettahash, which indicates that a high-stakes game is happening in the sector.
This indicates that well-funded public operators are keeping their next generation fleets online despite the negative margin. They actually support production by issuing shares or cash reserves.
The strategy is designed to put pressure on smaller, private competitors ​​who do not have access to capital markets.
After this, industry analysts warn that if Bitcoin prices do not recover quickly, the sector could face a long wave of capitulation.
In this scenario, unfortunate miners may be forced to liquidate not only their Bitcoin holdings, but also their physical infrastructure.
