Bitcoin

In a recent development, Bitcoin miners have been observed moving their assets, which could potentially trigger further selling pressure if these assets are liquidated. On-chain analytics platform CryptoQuant has reported a decrease in Bitcoin miner reserves, indicating a selling pressure from the miners’ side. The decline in reserves coincided with price declines in mid-April, suggesting a correlation between miner movements and market trends.According to CryptoQuant, the latest dip in miner <a href="https://news.todayq.com/news/data-miners-are-tapping-their-btc-reserves-to-breakeven-as-profitability-dips/" rel="noopener noreferrer nofollow">reserves</a> occurred this week, accompanied by an inflow to Binance, one of the leading cryptocurrency exchanges. Notably, two transactions of 1,750 BTC from miner wallets were identified, with a high probability that these funds ended up on Binance. The combined value of these transactions amounts to approximately $47 million, signaling a significant potential selling pressure in the market. Source: CryptoQuant The specific coin movement originated from the Poolin Bitcoin miner address. While this is just one Bitcoin miner, similar patterns of selling typically occur among miners, indicating a broader impact on the market. Consequently, the influx of assets from miners and their subsequent liquidation could exert downward pressure on Bitcoin prices and potentially affect the overall crypto sector.Another analysis by on-chain analysis firm Glassnode <a href="https://news.todayq.com/news/bitcoin-mining-revenue-is-down-96-93-from-its-peak-in-2017/" rel="noopener noreferrer nofollow">reveals</a> a decline in Bitcoin mining profitability. Glassnode’s assessment indicates that 52.3% of trading days have been unprofitable for the average miner. Mining profitability, as measured by the hash price, has fallen to $0.076 per terahash per second per day, a significant decrease compared to the spike observed on May 9 during the memecoin minting craze. Source: Glassnode The hash price has experienced a 38% decline since the same time last year, making Bitcoin mining less profitable. Additionally, the hash rates are close to peak levels, reaching 373 EH/s, as reported by Bitinfocharts. Coupled with near-peak difficulty levels and high energy prices, Bitcoin miners are currently facing challenging conditions.Adding to the potential selling pressure, a large number of Bitcoin options are set to expire soon. This convergence of factors, including the decline in miner reserves, reduced mining profitability, and upcoming options expiries, may contribute to further downward pressure on Bitcoin prices.As a result, BTC prices have already fallen 2.3% from their intra-week high, currently standing at $26,897 as of writing. With the weekend approaching, market sentiment indicates a potential weakening in Bitcoin prices. Investors and traders need to closely monitor these developments as they navigate the dynamic landscape of the crypto market.These movements of Bitcoin miners and the decrease in their reserves indicate a potential sell-off that could amplify the existing selling pressure in the market. Combined with reduced mining profitability and upcoming options expiries, these factors pose challenges for Bitcoin and the broader crypto sector. Market participants must remain vigilant and adapt to the evolving landscape to make informed investment decisions.© Todayq News

Bitcoin miners prepare for potential sell-off as assets decline, adding to market pressure

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