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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