As Bitcoin Rises Beyond $17,000 Briefly, Bitcoin Miners May Have Endured the Darkest Period in Q4

Published on:

Last Updated on December 4, 2022 by Bitfinsider

As they continue to sell significant amounts of the virtual currency, bitcoin miners appear to be giving up on the idea of retaining the first cryptocurrency for long-term benefit.

As of December 1, 10,000 BTC had already been dumped by bitcoin miners, according to data provided by CryptoQuant.

Compared to what was seen on November 26, when 2,569 units of the cryptocurrency were added to the market and also sold by its miners, the amount is noticeably smaller.

The current cost of Bitcoin mining and the decline in the value of the crypto asset were cited as causes for this development by CryptoQuant analyst Joaowedson in his observations on the subject. He said: “Faced with the current price of Bitcoin and the high cost of mining in several countries, miners are being forced to sell their positions.“

The current state of affairs portends doom for both the “producers” and the asset itself of the largest cryptocurrency by market capitalization.

Bitcoin miners risk making no money at all from their activities due to the BTC’s sharply decreased value and the expense involved in producing one unit of it.

Furthermore, there is always a chance that the price of the cryptocurrency could drop and that its volatility will further rise as they continue to dump the results of their effort on the market.

The market selloffs that have occurred in the past have also had an impact on mining revenue. The income of Bitcoin miners was 814.28 BTC at the time of this writing, according to data from Glassnode. With this, it was only logical to draw the conclusion that Bitcoin’s miners didn’t get much in the way of fees or rewards.

According to data from Coingecko, Bitcoin was trading at $17,013 at the time of publication, up 3.5% in value over the previous week.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.