Bitcoin Miners’ Exchange Flow Rises To Seven-Month High Amid Bloodbath
June 15 2022 - 9:09AM
NEWSBTC
Bitcoin mining profitability has plummeted by more than 75% from
the market peak, and is now at its lowest level since October 2020.
Bitcoin Price Plummets Further Bitcoin’s price plummeted to a
52-week low of $20,800 on Wednesday, down from an all-time high of
$68,788 by more than 70%. Despite the fact that the price has
already returned above $21,000, important market indications
indicate that bears still have a strong grip on the current market.
The Bitcoin Miners to Exchange Flow, a metric that measures the
amount of BTC transferred from miners to crypto exchanges, hit a
seven-month high of 9,476. The increase in exchange flows suggests
that miners are selling their BTC in anticipation of a price drop.
BTC miners'exchange flow. Source: Glassnode. Related article |
Exchange Inflows Ramp Up As Crypto Investors Clamor To Exit Market
Miners Actions Signals Market Sentiment BTC miners’ activities
often mirror broader market sentiment, as they typically sell BTC
to avoid losing money on their mining payouts. The large drop in
mining profitability explains the increase in Bitcoin miners
selling activity. Mining profitability has plummeted by more than
75% since its peak, and Bitcoin’s hash price is at $0.0950/TH/day,
the lowest since October 2020. BTC/USD falls to a 52-week low.
Source: TradingView The netflow of miners to exchanges has also
improved. When the miner netflow is positive, it means that more
coins are being transmitted to exchanges than to individual
wallets. This type of activity indicates that miners are negative
on the price and are feeling pressured to sell. With the price of
BTC falling below $21,000, many BTC mining rigs have become
unprofitable and may be shut down if the price does not recover. As
the whole market value went below $1 trillion, the rest of the
crypto market followed BTC’s price behavior. BTC has gone through a
number of bull cycles in the last decade, each followed by an
80%-90% drop from its peak. The BTC price, on the other hand, has
never gone below the previous cycle’s all-time high. BTC is
currently trading at its 2017 high of $19,783, and any sell-off
from here might drive it back into 2017 territory. Related article
| TA: Bitcoin Shows Signs of Recovery, $23K Presents Resistance
Featured image from Getty Images, chart from TradingView.com
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