Bitcoin

Bitcoin: Out of sight, out of mine could be the BTC miner motto for Q4 because…

Bitcoin Miners were at the receiving end of huge losses owing to the bear market of 2022. With major mining corporations contemplating bankruptcy, there could be massive sell pressure on other Bitcoin miners. Analyzing the pros and cons of Bitcoin mining and the state of Bitcoin at the current moment.

Published

2 years ago

October 30, 2022

Saman Waris

Source: Unsplash

Over the last few months, many miners have faced massive challenges to keep up profits and continue to mine Bitcoin [BTC]. With the growing hashrate and soaring energy prices, miners continue to face one difficulty after another. And one such miner happens to be Core Scientific.

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Here’s AMBCrypto’s Price Prediction for Bitcoin [BTC] for 2022-2023

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Where is my mine?

One of the largest blockchain miners, Core Scientific, issued a statement that implied that it may have to explore bankruptcy. The mining organization anticipated that its existing cash resources will be depleted by the end of the year, possibly sooner. This could be an indicator of the fact that top public

Bitcoin miners may be suffering the effects of the bear market.

As can be seen from the image below, the top 10 public bitcoin miners represent 18% of the total hashrate of the entire Bitcoin network. With increasing energy prices and growing hashrates, miners would be forced to sell their BTC to earn profits. This increase in selling pressure for Bitcoin could impact BTC negatively.

Source: Messari

However, despite the continuous sell pressure being faced by miners, miner revenue generated by fees witnessed some growth over the past few days. According to data from on-chain data intelligence platform

Glassnode’s data, miner revenue generated by fees collected reached a one month-high on 29 October. If the revenue generated continues to grow, the selling pressure on miners could reduce.

Source: Glassnode

A look at the mining flipside

Bitcoin miner’s revenue was also contingent on Bitcoin’s growth. According to data from Messari, Bitcoin’s realized volatility went down immensely over the past. Furthermore, this figure decreased by 67% since July, making BTC less riskier for investors during the said period.

3/ Did someone say decoupling? ?#Bitcoin's and #Ethereum’s 30-day realized volatility continues to fall as equities volatility continues to rise.

Since peaking in early July, Bitcoin's and Ethereum’s realized volatility has declined 67% and 63%, respectively. pic.twitter.com/jmCiR7bT4c

— Messari (@MessariCrypto) October 28, 2022

Another positive indicator of Bitcoin’s potential growth could be that the overall Bitcoin supply in profit witnessed some growth. Furthermore, it also reached a one-month high on the 29 October.

? #Bitcoin $BTC Supply in Profit (7d MA) just reached a 1-month high of 10,555,234.130 BTC

View metric:https://t.co/iA2PiXhX8N pic.twitter.com/oFE1OgF8jV

— glassnode alerts (@glassnodealerts) October 29, 2022

Despite these positive indicators whales showed their disinterest in Bitcoin. As shown in the image below, it can be seen that the number of addresses holding more than 100 Bitcoins decreased. If large addresses continue to let go of their Bitcoin, BTC’s prices will be affected negatively.