Bitcoin miners 'next trigger' for BTC price crash as outflow hits multi-month highs
Miners face an impossible situation if prices stay this low, which could lead to a selloff accompanied by a low BTC macro price .
Market news
Bitcoin (BTC) miners could be the next BTC price 'trigger', research warns as drawdowns escalate.
In a Quicktake article for on-chain analytics platform CryptoQuant on November 10, contributor MAC.D suggested that miners could soon face "bankruptcy".
Research: Network Conditions Will "Strangle" MinersAfter BTC/USD plummeted 20% within days, miners started operating at a higher cost than the block subsidy and transaction fees they were earning.
The result is that mining rigs are idle and miners are selling BTC to cover their expenses.
“BTC security is at an all-time high, but its mining volume is gradually decreasing. This will strangle miners,” explained MAC.D.
He pointed out that outflows from miner wallets exceeded 5,400 BTC on November 9 alone, which "can be interpreted as increased selling pressure".
In the future, the situation could get worse if big mining companies end up mass-selling stored BTC as a way to pay their obligations.
“There is already a lot of news that NASDAQ-listed mining companies cannot pay their debts. If they go bankrupt, there will be a situation where they have no choice but to sell BTC,” the message continues:
"Therefore, it is necessary to closely monitor the miner withdrawal chart, and if the amount of miner withdrawals increases, BTC may fall further."
A silver lining could nevertheless come soon after such a major capitulation. Historically, there has been a correlation between miner deletions and BTC price lows.
“But the bankruptcy of former miners formed the bottom of BTC,” the message concludes:
“So when they go bankrupt, they have to take the opportunity to buy BTC.”
Miners face an impossible situation if prices stay this low, which could lead to a selloff accompanied by a low BTC macro price .
Market news
Bitcoin (BTC) miners could be the next BTC price 'trigger', research warns as drawdowns escalate.
In a Quicktake article for on-chain analytics platform CryptoQuant on November 10, contributor MAC.D suggested that miners could soon face "bankruptcy".
Research: Network Conditions Will "Strangle" MinersAfter BTC/USD plummeted 20% within days, miners started operating at a higher cost than the block subsidy and transaction fees they were earning.
The result is that mining rigs are idle and miners are selling BTC to cover their expenses.
“BTC security is at an all-time high, but its mining volume is gradually decreasing. This will strangle miners,” explained MAC.D.
He pointed out that outflows from miner wallets exceeded 5,400 BTC on November 9 alone, which "can be interpreted as increased selling pressure".
In the future, the situation could get worse if big mining companies end up mass-selling stored BTC as a way to pay their obligations.
“There is already a lot of news that NASDAQ-listed mining companies cannot pay their debts. If they go bankrupt, there will be a situation where they have no choice but to sell BTC,” the message continues:
"Therefore, it is necessary to closely monitor the miner withdrawal chart, and if the amount of miner withdrawals increases, BTC may fall further."
A silver lining could nevertheless come soon after such a major capitulation. Historically, there has been a correlation between miner deletions and BTC price lows.
“But the bankruptcy of former miners formed the bottom of BTC,” the message concludes:
“So when they go bankrupt, they have to take the opportunity to buy BTC.”
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