Crypto miners have reportedly started offloading their bitcoin (BTC) assets as the market value continues to drop.
According to blockchain analytics firm CryptoQuant, cryptominers have moved 14,000 bitcoins worth almost $300 million out of their wallets in just one day, the largest since Jan. 2021.
Currently, BTC is down to $22,924.50 or nearly 70% from its all-time high of around $69,000 last November
Aside from dropping crypto values, energy prices have gone up due to oil shortages worldwide in the aftermath of the Russian invasion of Ukraine.
Coupled with high inflation rates, crypto miners would be less likely to make a profit under these conditions.
“Given rising electricity costs, and bitcoin’s steep price decline, the cost of mining a bitcoin may be higher than its price for some miners. With high-profile reports of resignations from mining companies, as well as miners that have used their equipment as collateral to borrow money, the bitcoin mining industry could be under growing pressure,” said Citi analyst Joseph Ayoub in a note on July 5.
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