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Bitcoin Miners Cash in on Bear Rally Profits by Selling More than 6,000 BTC Since August 1 – Bitcoin News
Bitcoin’s value against the US dollar lost 7.3% in the past 24 hours after more than $600 million in value was removed from the $1.07 trillion crypto economy. Statistics show that a number of bitcoin miners capitulated in the past two weeks and sold 5,925 bitcoins worth millions, according to cryptoquant.com data.
More than 6100 Bitcoin sold since the first of the month, after a short miner capitulation break
Bitcoin’s US dollar value fell from $23,593 per unit to $21,268 per coin at 8:30 a.m. (EST) on Friday morning. More than $600 million has been wiped from the crypto economy over the past day as BTC lost 7.3% and ETH fell 7.4%. A number of other coins lost value against the US dollar, as well as BNB down 5%, XRP down 9%, and ADA down 10.3% over the past 24 hours.
According to data originating from cryptoquant.com shared of Ali Martinez bitcoin miners capitulated in the last 14 days. “Bitcoin miners appear to have taken advantage of the recent rally to book profits,” Martinez said. “Data shows that miners sold 5,925 BTC in the last two weeks, worth approximately $142 million.”
Following Martinez’s tweet, cryptoquant.com data shows that more than 6,100 BTC have been sold since the first of August. The online portal The miners’ position index say bitcoin miners are “moderately selling” bitcoin. Using today’s crypto market values, 6,100 BTC equates to $130.80 million, a much lower value than Martinez’s offer price.
Miners took a break from selling BTC after a lot of mined bitcoin was sold in the two months before August 1, 2022. A Blockware Intelligence Newsletter published on July 29 explained that the end of the miner capitulation was near. “According to the hash band metric, Bitcoin is 52 days into a miner capitulation,” the Blockware newsletter said. Blockware’s report added:
The end of a miner capitulation historically marks a bear market bottom.
During the first two weeks of August, it seemed that the miner capitulation was over and BTC managed to print $25,212 per unit on August 14th. BTC has lost 14.58% since its high on August 14 and is currently down 69% from the $69,044 per unit price recorded on November 10, 2021. In the last week, Bitcoin mining difficulty rose by 0.63%, making it harder for miners to discover BTC blocks, and with lower prices, mining bitcoin is less profitable today than it was five days ago.
Bitcoin Hashrate Skyrockets 46% In Last 24 Hours After Latest Difficulty Increase
Despite the increase in difficulty, BTC’s hash rate has skyrocketed to 267.40 EH/s after running below the 200 exahash per second (EH/s) zone at 182.40 EH/s the day before August 18, 2022. It is a 24- hours increase of around 46.60% higher than the 182 EH/s recorded on Thursday afternoon (EST).
Using the current difficulty parameter, BTC’s current market cap and a cost of around $0.12 per kilowatt hour (kWh), a Bitmain Antminer S19 XP with 140 terahash per second (TH/s) can get an estimated $4.85 per day in profit. Microbt Whatsminer M50S launched in July with 126 TH/s can earn an estimated $2.74 per day in profit, according to current market statistics.
What do you think about miners selling 5,925 bitcoins in the last two weeks? Do you think the miner capitulation is over or will it continue? Let us know what you think about this topic in the comments section below.
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