The successive bankruptcies of Bitcoin miners in recent days poses a huge sell-off risk for BTC. The increasing trading volume of whales also indicates that a major volatility is imminent.
Bitcoin faces selling pressure as miners go bankrupt
Amid the creeping Bitcoin price since the beginning of the year, the falling value of mining rigs, rising electricity costs and rising hash rate power, Bitcoin mining operations are facing tough market conditions. Bitcoin mining company Argo Blockchain reported to Bloomberg today that it may soon go bankrupt due to a shortage of cash. Argo is trying to raise funds through a $27 million share sale. However, he reported that he could not raise enough funds to save himself. The company sells 4,000 mining rigs for $5.6 million to save time.
Following the announcement, Argo’s stock tumbled 52.28% daily, making ARBK. It is currently trading at $0.94. It fell 95.48% from the November 2021 ATH level of $20.95.
How might Bitcoin be affected?
Large mining operations are struggling to stay afloat. A good case scenario is Argo Blockchain and Core Scientific being replaced by rival firms. However, other mining operations face similar challenges. Historical data shows that a similar situation occurred before in November 2018. BTC price dropped to $3,000 after spending five months at roughly $8,000 to $6,000 during this period. Currently, miners are struggling as the BTC price spends between $18,000 and $24,000. Analysts state that this will force miners to make heavy sales.
However, Bitcoin Magazine PRO analysts claim that publicly owned Bitcoin mining companies still hold 34,040 BTC worth about $694 million, and these operations account for about 20% of Bitcoin hash power. The data seems to support this prediction. The three largest mining companies – Marathon Digital Holdings, Hut 8 Mining Group and Riot Blockchain – currently hold 27,802 BTC (about $567 million). If the numbers are correct, mining operations will cause significant selling pressure.
Santiment draws attention to increased whale transactions for these coins
According to the analytics firm, the number of huge crypto whales trading over $100,000 is on the rise. Santiment also added that the “most important” transactions are Tether (USDT) and USD Coin (USDC). Firm analysts expect “major market moves”.
https://twitter.com/santimentfeed/status/1587178406453526529
As you follow on Kriptokoin.com, Bitcoin is currently trading at $ 20,451.41. He has been inactive for the last 24 hours. Meanwhile, whale watching boats show that a BTC whale is carrying around 2,181 BTC, worth $44.7 billion.
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