Bitcoin (BTC) miners could form the next BTC price “trigger,” research warns as withdrawals intensify.
In a Quicktake post for on-chain analytics platform CryptoQuant on Nov. 10, contributor MAC.D suggested that miners could soon face “bankruptcy.”
Research: Network conditions “will strangle” miners
After BTC/USD fell 20% in a matter of days, miners began operating at a higher cost than the block subsidy and transaction fees they earned.
The result is mining rigs being idled and miners selling BTC to cover expenses.
“BTC security is at an all-time high, but its mining volume is gradually decreasing. This will strangle the miners,” MAC.D explained.
He pointed to outflows from miner wallets passing 5,400 BTC for Nov. 9 alone, something which “can be interpreted as increased selling pressure.”
Going forward, the situation could worsen should major mining firms end up selling stored BTC en masse as a way to pay obligations.
“There is already a lot of news that mining companies listed on NASDAQ cannot pay their debts. If they go bankrupt, there will be a situation where they have no choice but to sell BTC,” the post continued.
“Therefore, it is necessary to keep a close eye on the miner withdrawal table, and if the amount of miner withdrawal increases, BTC is likely to fall further.”
A silver lining could nonetheless come shortly…
