“The Stranger Things” On The Crypto Market: Miners Are Massively Selling Bitcoin
Halving Bitcoin has finally occurred. But despite the forecasts of many crypto enthusiasts, the hopes for an increase in the price of the flagship cryptocurrency seem to be shaken. Miners started massively selling Bitcoin like never before. What can this mean and what will it lead to? Let’s get it together.
Miners trapped in operating expenses
Halving Bitcoin is embedded in the protocol of the cryptocurrency itself. Every 4 years, the remuneration for Bitcoin is halved, respectively, first of all, this event affects the state of miners. Not a secret. that cryptocurrency mining requires significant investment in equipment and operating costs. Thus, halving the remuneration puzzles miners. They are forced to look for ways to reduce the cost of Bitcoin mining.
But if you look at the previous halving, for the crypto industry it was a good impetus for growth. Then the bulls were firmly entrenched in the cryptocurrency market, Bitcoin reached record highs and a relatively positive trend was forming.
On the eve of halving in May 2020, many cryptanalysts bet that miners would refuse to sell Bitcoin at a loss-making price that does not cover their costs at all. But everything turned out differently: miners in one night dropped $5 million more than ever.
Miners sell their BTC stocks
A similar massive sale of Bitcoin was already recorded in March 2020 after the so-called “Black Thursday” and the price of the flagship crypt dropped to $3,800. On March 13, miners dropped 622 BTC, which exceeded the level of Bitcoin mined on the same day. Thus, this indicates that the miners resorted to selling Bitcoin from their stocks.
Cryptanalysts have already made disappointing predictions: if the price of Bitcoin does not rise shortly, many miners will have to capitulate. First of all, this applies to small miners, for whom the reduction in mining remuneration was a real blow. Also, some analysts are afraid that the price of Bitcoin from the desired rise up may turn around and reach the bottom.
Those who cannot cover the cost of electricity, the purchase of new equipment, will be on the edge of the abyss and bankruptcy. They will be forced to look for a new business model for themselves and quite likely will refuse to mine at all.