Although Bitcoin's computing power has hit a record high, miners are also lazy for a moment and are still struggling for profit.
On October 14, Bitcoin's entire network computing power climbed to an all-time high (ATH), reaching 166 EH/s. But the problem is that although Bitcoin's computing power and price have recently risen simultaneously, it seems that only a small number of miners who use "next generation mining machines" are profiting at the current price level.
In the past few days, the price of Bitcoin has been hovering in the $11,000 range. At the same time, Bitcoin's computing power mainly fluctuates between 130-140 ETH/s.
If the price of Bitcoin can be $1,100 higher than the current $11,000, or about $12,100, it may be better for Bitcoin miners. Only at this price can miners be rewarded from the block in May. Get compensation in the halving.
On the other hand, from historical data, Bitcoin's performance in the third quarter is always unsatisfactory. Bitcoin miners sold a large amount of Bitcoin in July and August this year, resulting in a weekly decrease in the net inventory of Bitcoin miners by about 125 BTC in the third quarter. However, the data shows that the pace and quantity of miners’ selling is quite regular. Sold in irregular quantities or in abnormal ways. In fact, there are two main sources of selling pressure in the current market:
1. One is Bitcoin miners who dilute the supply by selling BTC to the market (this is similar to the hidden "tax" caused by inflation);
2. The other is a cryptocurrency exchange that sells Bitcoin on the market (they are similar to "taxing" traders).
It is worth mentioning that the selling pressure from Bitcoin miners and giant whales is mainly due to the previous long-term market downturn. , When miners start to sell their Bitcoin holdings are likely to trigger a serious market correction, because price fluctuations exceeding a certain range may trigger leveraged transactions and lead to forced liquidation of user positions. Therefore, theoretically, even small Miners dumping Bitcoin may also cause significant price fluctuations due to the "butterfly effect".
In fact, some Bitcoin miners have been selling Bitcoin since July, but the market has not been affected much. Despite repeated attempts by bears to drop the price of Bitcoin below the critical level, Bitcoin is still hovering above the key technical support level of $10,000. Under the high level of selling pressure, Bitcoin has responded well, and this elastic trend shows that long-term cautious bullish forecasts can be made for prices. In addition, several other on-chain indicators also indicate that Bitcoin is now in a healthy accumulation phase. Therefore, in the long run, the industry believes that the miners' selling volume this time is not enough to affect the next bull market.
If the miner sell-off cannot bring pressure on Bitcoin, then Bitcoin's bull market upward trend is a consistent thing.
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You must be there when lightning strikes.
