In a report looking at the crypto mining sector, coinbase says that if all newly issued bitcoin were immediately sold onto the market each day, it would equate to only 900 BTC of selling pressure. By willcanny99
A Bitfarms employee inspecting miners at Cowansville. A common concern during cyclical downturns in bitcoin mining is the extent to which miners are selling their BTC holdings, crypto exchange Coinbase said in a research report last week.
In times of market upheaval and a falling bitcoin price, margins compress across the board, and force more miners to become net sellers, the note said. Given the price drop and the resulting loss of profitability, the financing environment for the mining industry has “shifted materially” since late last year, and raising capital in the public markets has become very difficult, Coinbase said.
Still, even if all newly issued bitcoin were immediately sold onto the market each day, that would equate to only 900 BTC of selling pressure, which represents just 1%-1.5% of total daily volume, it added. A healthier bitcoin derivatives market should allow miners more options in terms of potential hedging strategies, the report added.
While the mining market may still be far from an equilibrium hashrate, miner selling and shuttering of activities in recent months has resulted in a falling network hashrate and ultimately mining difficulty, and once these trends flatten it could signal the start of a bottoming process, based on similar trends observed in the 2018
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin addresses in loss hit all-time high amid $18K BTC price targetBitcoin has never seen so many addresses at a loss, while CryptoTony__ predicts a trip to $18,000 next.
Read more »
Bitcoin's inverse correlation with US dollar hits 17-month highs — what's next for BTC?Market pundits anticipate the dollar rally to either stall or correct by the end of 2022, benefiting Bitcoin.
Read more »
BTC, BNB and ADA Price Analysis for July 3Which altcoin can rise against the fall of BTC? Dave_Jonez_02 BNB Pain_Alive_BNB Binance_DEX CardanoStiftung ADAcoin_ Cardano cardano
Read more »
Top 5 cryptocurrencies to watch this week: BTC, SHIB, MATIC, ATOM, APETechnical analysis shows traders relatively disinterested in Bitcoin and altcoins until BTC reclaims $20,000 as support. In the event of a reversal, SHIB, MATIC, $ATOM and $APE could be the first to breakout.
Read more »
BTC/USD Forex Signal: More Downside as Crypto Sentiment FallThe BTC/USD pair remained solidly below the important support of 20,000 during the weekend as sentiment waned.
Read more »
MicroStrategy bought another 480 BTC — Should you buy, too?Tune in to Market Talks with Crypto Jebb. The show’s special guest is Scott Melker, aka The Wolf Of All Streets, a trader and investor. Our main topics will ...
Read more »