Cryptocurrency market plunges in chaos; Bitcoin miners sell actively

Following the collapse of the cryptocurrency exchange FTX and the bear market, digital assets’ value seems to be struggling to break through the $16,000 barrier. Thus, marking pressure on Bitcoin (BTC) miners to sell more of their output. “The overall cryptocurrency market cap is back above the $800 billion mark with heavyweights such as Bitcoin and Ether leading the trade. The cryptocurrency leaders are discussing the FTX fallout openly and brainstorming the corrective measures on public platforms which are restoring investor confidence,” Shivam Thakral, CEO, BuyUcoin, a cryptocurrency exchange company told FE Blockchain.

As per a report by Glassnode, a blockchain data provider Bitcoin miner hash price has plunged to an all-time low of $58.3 per exahash per day. Meanwhile,  Coinwarz, a cryptocurrency mining calculator, stated that bitcoin’s mining hash rate is currently 243.64 EH/s, a significant decline from the record high of 347.16 EH/s. “The current state of the market puts miners in a challenging position due to rising energy costs, a high mining hash rate, and a drop in the value of bitcoin,” Punit Agarwal, founder, KoinX, a cryptocurrency exchange, said.

This week reported ten-month’s lowest combined balance of all cryptocurrency miners, as per data from Glassnode. 10% of all Bitcoin is currently held by miners, which is valued at about $30.4 billion.

Source: Glassnode

As per industry experts, the next bitcoin mining difficulty could be very detrimental. Cryptocurrency analysts have predicted that the next minute would be difficult as blocks are absent or found late due to high mining difficulty.”Bitcoin and Ether witnessed a mini rally surging by 4.41% and 5.49% respectively. The current state of the market puts miners in a challenging position due to rising energy costs, a high mining hash rate, and a drop in the value of BTC,” Laxman Singh, founder, Bitbatua, cryptocurrency payment company, stated.

Furthermore, recent data from IntoTheBlock, a cryptocurrency data analytics company,  revealed that over 50% of Bitcoin owners are currently experiencing their first position-level loss in the last two years. 

Also Read: How Blockchain can solve the curious case of cryptocurrency and terrorism

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