In the last seven days, the price of bitcoin has fallen by nearly 10%. High selling pressure from BTC miners, according to the data, has caused the currency’s price to fall below the critical $19K price threshold.
According to Julio Moreno, a senior analyst at Cryptoquant, Bitcoin miners have entered a capitulation stage. He stated that they’ve seen an increase in the total amount of money exchanged between miners and traders. At a time when prices are at historic lows, a surge has been seen.
Bitcoin miner capitulation occurs in two forms according to the CEO of CryptoQuant Ki-Young Ju. Initially, experienced miners were selling their wares at a profit. As a second option, new miners are selling at a loss.
In contrast, the recent surge in Bitcoin sales has significantly impacted the BTC market’s ability to maintain a steady price. Research by Moreno said that the income of mining companies has decreased over time. The cost of mining has increased due to the difficulty. When the price of Bitcoin fell by 39 percent during the same time, mining difficulty rose by 51 percent.
Miners, says Moreno, have become sellers as profits have dwindled. The number of Bitcoins that miners sent to exchanges in June was roughly 23,000. Since May 2021, this has been the highest monthly reading. As a result, miners have been forced to work in the “highly underpaid” area.
One of the largest bitcoin miners in existence, Bitfarms, released its monthly report on July 1. In June 2022, 420 new Bitcoins were created. There has been a 58% increase from June 2021 to June 2021. Meanwhile, the company sold a total of 3,353 Bitcoins for $69 million throughout the month. They utilized a part of the funds to pay off their building.
This month, the price of the world’s most popular cryptocurrency, Bitcoin, fell to a low of $17,800. Over the last 30 days, BTC has lost 35% of its value. At the time of this writing, it is selling for $19,157. There has been a 24% decline in the 24-hour trading volume of Bitcoin, which now stands at $24.9 billion.