Another Sell-off Expected for Bitcoin (BTC) As Miner’s Revenue Drops
The crypto giant Bitcoin is currently trading within the accumulation zone between $19,000 and $19,600 and could face another sell-off in the coming weeks. The price has been struggling to gain strong momentum and has not been able to break above $20,000 convincingly for over a month now.
On the other hand, the Bitcoin hash rate is also rising, making things more difficult for BTC miners. An increase in hash rate means more computational power is needed for Bitcoin to build a new block, and that is racking up the energy bills for the miners. Mining revenue is decreasing, which could force some of the miners to start selling their mined BTC sooner.
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Can We Expect Another Sell-off?
According to the popular on-chain data from Glassnode, Bitcoin miners are expected to attract another sell-off. The hash price has hit an all-time low of $66,500 per Exhash, and the profits for miners are declining rapidly.
Another research firm Arcane published a similar report claiming that the mining revenue for Bitcoin has dropped by 81% in the past 12 months. Most miners who had a gross margin of 80% – 90% are now dealing with $30% – 40%.
However, if we look on the other side, we can also notice that the long-term holders of Bitcoin are still standing their ground. According to Glassnode numbers, 78% of BTC’s supply has stood still for the last six months. Considering the recent macroeconomic events, it is quite an impressive figure.
Experts are also claiming that Bitcoin is now reaching a stage of maturation. BTC is at a point where it will become less volatile in the future, and external factors like FED hikes won’t affect it as much as they have in the past.
However, a sell-off due to an increase in Bitcoin’s hash rate is looking likely, and we can see Bitcoin take another hit before recovering.
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