Bitcoin (BTC) miners’ balance in the last few months caused pressure in the market, resulting in a price drop. As the number of their assets hits a 14-month low, there is new hope for traders.
Miners greatly influence the price of Bitcoin and altcoins, as market prices depend on demand and supply. The pressure of miners selling assets leads to a flooded market and a drop in rates. However, Bloomberg recently noticed that Bitcoin miners have likely reached a capitulation state, raising hopes for the crypto market.
Miners have faced a rough year after the fall of Bitcoin and the rising energy crisis in the world, contributing to low revenues. Mining companies faced the pressure of selling their reserves to cater to needs leading to extensive net outflows in the last few months.
A graph by Glassnode indicates that Bitcoin miners’ balance has hit a 14-month low of 1,818,615. The last similar low was registered in October 2021.
Most miners have entered into hosting contracts and Power Purchase Agreements (PPAs) that entail consuming energy or paying an additional fee. Miners endure losses while mining with the hope of a better price in the future or closing down their businesses. Presently, the Bitcoin market is entering a double-dip miner capitulatory era.
The last seven days have stretched the accounts of miners. Glassnode indicates that miners have transferred a high number of Bitcoins in the previous few days leading to an average of 47,109,254 BTC.
As demonstrated above, miners are currently under pressure to sell more than they mined during the year. The amount of Bitcoin sold is more than the amount earned, which indicates that they will stop trading at some point and allow the market to thrive. According to Glassnode, the reserves could dry very soon, triggering a price rise in the coming days.