The worldwide digital asset market is still reeling from the impact of FTX’s dramatic collapse. Over a hundred billion dollars apparently disappeared in the market in a matter of days. The ripple effects, however, have finally reached the Bitcoin mining community.
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There has been a mutiny among Bitcoin miners due to the currency’s falling value.
According to Glassnode, the price of Bitcoin miner hashes has hit a new record low. This amount has now stabilised at $58.3K per Exahassh each day. Since that all-time high, the price of bitcoin has fallen by over 76%. The mining sector is under extreme stress due to the recent decline in Bitcoin’s price.
Last week’s announcement of the FTX collapse prompted the Bitcoin miners to release more BTC. According to the numbers, miners transferred an extra 8.2500 Bitcoins to strengthen their holdings. There are currently roughly 78,000 BTC in the miner’s coffers. However, it has completely wiped out 2022’s surplus accumulation.
The data shows that Bitcoin miners are spending a staggering rate of 135% of the daily issued coins. This indicates that all 900 newly created BTC were distributed to miners. In the meantime, they are releasing 315 BTC every day from their reserves.
A 13% reduction in Bitcoin’s price
In the past 30 days, the price of bitcoin has plummeted by 13%. At the time of writing, the median value of a bitcoin was $16,765.17. There has been a drop to $322 billion in market cap.
Glassnode reports that in the previous week, miners have been compelled to sell out 9.5% of their reserves. They put out $7,700 in Bitcoin. Since 2018, this is the steepest monthly drop in mining employment. Mining Bitcoins tends to be a cyclical business, as evidenced by this.
Coingape stated earlier that Bitcoin holdings are being liquidated by institutional investors due to the FTX situation. Contrarily, Grayscale Bitcoin Trust Fund (GBTC), the largest cryptocurrency fund in the world, is trading at a negative premium of 40%.
Source: Google Trend
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