Bitcoin miners can take fresh 20% BTC price hit before capitulating, data shows – News Couple
CRYPTO NEWS

Bitcoin miners can take fresh 20% BTC price hit before capitulating, data shows

Bitcoin (BTC) miners are bigger than ever at current price levels, and new data shows just how likely a miner’s mass sell-off is.

as pointed According to the popular Twitter account @venturefounder on January 14, even at $42,000, the BTC/USD trading pair is about 20% above the cost price of the two miners.

Miner Surrender Behind ‘Worst’ Bitcoin Price Drops

Although it fell all the way to $27,000 below its all-time high, BTC is more tempting than ever for miners. The hash rate, an estimate of the total processing power devoted to mining, reached an all-time high this week. امريكان اكس برس

Those who are concerned that the new BTC price drop could pressure miners to sell, meanwhile, have received fresh confirmation via data covering how much BTC/USD they must trade to break even.

Referring to the BTC production cost index from Charles Edwards, CEO of Capriole Asset Manager, the venture founder revealed that the break-even point is currently at ,000. لعبة الابراج

“The worst Bitcoin dump ever was due to miners capitulating (December 2018, March 2020), when BTC drops below production costs, it is at risk of miners capitulating,” he added in the comments.

“BTC was at risk of miners capitulating at $30K in May. The current production cost is $34,000, 20% below the current price.”

Annotated graph of the cost of producing Bitcoin (screenshot). Source: @ venturefounder / Twitter

As such, there is no reason for miners to sell thanks to the profitability – as well as the future perspective – of their operations.

in the middle Mail On his benchmark from 2019, Edwards also noted that transaction fees given to miners give them additional protection against spot price incursions that fall below the cost of production.

Another view says, “Historically, the electrical cost of producing bitcoin has represented a lower bound in the bitcoin market price.”

Mining ignores spot price movements this year

As Cointelegraph reported, miners are already voting with their wallets as BTC consolidates under $50,000.

Related: The Bitcoin Cycle Isn’t Over Yet Miners Have Been In It For A Long Time: Fidelity Report

Instead of selling, miners Much BTC accumulated more this month and that continued through the rallies.

This speaks of a healthy balance sheet and determination for the future – concerns about looming economic hardships are not weighing on the mining sector at the moment.

Bitcoin hash rate chart. Source: Blockchain

From now on, the current worst-case scenario estimates among well-known analysts expect the minimum price of BTC to be at least $30,000.