Bitcoin [BTC] miners feel the heat with high sell pressure, can this ease their trouble
-Bitcoin Stamps could play a key role in attracting users to the Bitcoin network.
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– Miners saw pressure as difficulty in mining continued to rise.
According to data provided by Messari, on 14 April, Bitcoin Stamps (Secure Tradeable Art Maintained Securely) surpassed Ordinals in terms of growth rate.
A new #bitcoin NFT has emerged called Bitcoin Stamps.
Stamps use a different approach to embedding data, targeting transaction outputs instead of the witness portion (used for Ordinal inscriptions) of the transaction, which guarantees it cannot be clipped by node operators. pic.twitter.com/Yw606bAXl9
— Messari (@MessariCrypto) April 14, 2023
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For the uninitiated, Bitcoin [BTC] Stamps has emerged as an alternative way to store data on Bitcoin. Compared to Ordinals, which stores image data within printable transaction witness data, Bitcoin Stamps stores it directly within spendable transaction outputs.
The NFT market of the Bitcoin network was also positively impacted by the interest seen in both Stamps and Inscriptions. This was evident from the growing number of NFT trades on the network over the past week.
BTC miners in trouble
Even though an active interest in the Bitcoin network may be a positive development for BTC, the miners were still facing distress.
As per analyst CryptoVizArt, the Puell Multiple, an indicator that measures miners’ revenue against their average income over the previous year, showed that miners were making less than 12% of their average yearly earnings. This was due to the growing hashrate of Bitcoin, which led to a spike in the network’s difficulty.
🧵/5. By adjusting the difficulty change, the Puell Multiple can show a more realistic estimation of contraction in miners' revenue. Investigating the Adjusted-Puell Multiple shows that miners are still earning 12% less than their yearly average income. pic.twitter.com/uMxTx0QNJX
— CryptoVizArt.₿ | ZiCast 🎙 (@CryptoVizArt) April 13, 2023
The ongoing bear market also placed significant pressure on miners’ revenue with the contraction in prices and a rise in difficulty. If the difficulty level remains unchanged, breaking the $33.6k mark will indicate the conclusion of the bear market for miners, as per CryptoVizArt.
Another indicator of high selling pressure was the increasing MVRV ratio for Bitcoin. A high MVRV ratio usually indicates that an asset has been overbought and many addresses have the potential to sell their holdings for a profit.
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However, the Long/Short indicator was also positive. This suggested that most of these addresses were long-term holders who are unlikely to sell despite seeing profits.
Traders, on the other hand, continued to be slightly bearish with their decisions, as showcased by Greeks.live’s data, according to which there were more puts than calls options for BTC. Around 30,500 BTC options were about to expire, with a Put-Call Ratio of 0.99, with the max pain point being $29,000.