It has never been seen in the last 7 years that Bitcoin miners are facing their bad time, selling their assets actively, and company shares are decreasing parallelly.
As a result of the action by miners, Bitcoin price is going down. According to Cointelegraph, “Bitcoin (BTC) price accelerated its sell-off on November 21 to hit a new yearly low at $15,654.”
The Capriole Fund company Founder, Charles Edwards, Tweeting about the same topic, and it looked like he stood in support of Miners, said, “If the price doesn’t go up soon, we are going to see a lot of Bitcoin miners out of business.”
Edward’s statements are based on the facts that, according to the graph,” Most aggressive miner selling in almost 7 years now. Up 400% in just 3 weeks!” stated Edward in the Tweet.
Miners Facing Problems
Miners are facing issues in mining the bitcoin, in which the results miners are selling their assets actively.
The first aspect is increasing hash rates to mine the next block. It’s been getting harder to mine the next block than earlier, which is good for the network security but not for the miners.
Energy prices are also increased, and mining needs lots of energy consumption to mine one block, costing a pretty high amount. Miners can easily pay the cost of energy consumption, but it reduces the profit margin for the miners.
Beingcrypto reported on November 21 that ‘Iris Energy Fails to Service $100 Million Loan, Cuts BTC Mining Hardware’ in which an Australian firm, Iris energy, is in $108 million debt and is forced to shut down its hardware.
And the third aspect is Bitcoin price; Bitcoin price is unexpectedly decreasing. As a result, miners are showing aggression in selling their assets. Bitcoin price at the time of writing is $15,794.16, according to coinmarketcap on November 22.
Trading view stated on November 22, when Bitcoin price decreased, “Some analysts are betting on Bitcoin price declining below $14,000 which would put another 10,000 BTC at risk for liquidation.”
Miners are facing issues in mining assets. As a result, they start selling their assets in the market. Mines are indirectly forced to do so because of the circumstances created in the market.
People still think that Bitcoin miners are selling their assets, and that’s why Bitcoin price is decreasing; technically, it’s also possible, but miners are facing 2 more issues that made them sell their assets.