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HomeNewsBTC Miners Liquidate 10,600 Bitcoins, Sending Hashrate Down 34%

BTC Miners Liquidate 10,600 Bitcoins, Sending Hashrate Down 34%

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  • Bitcoin miners sold approximately 10,600 BTC, valued at around $455.8 million, amidst a significant drop in the network’s hashrate.
  • Despite this selling spree, the BTC price remains stable, potentially buoyed by strong inflows into Bitcoin ETFs.

Surge in Miner Selling Activity

In a notable shift within the cryptocurrency landscape, Bitcoin miners have embarked on an aggressive selling spree. Crypto analyst Ali Martinez reports that miners have offloaded nearly 10,600 Bitcoins in the past day, equivalent to approximately $455.8 million. This substantial volume of selling signifies a critical response by miners to changing market dynamics and could have far-reaching implications.

Understanding the Hashrate Decline

Bitcoin’s network hashrate, a measure of the computational power contributed by miners, experienced a drastic 34% reduction recently. This decline from 629 EH/s to 414 EH/s has been linked to the Electric Reliability Council of Texas (ERCOT)’s restrictions on electricity usage. In light of extreme winter storms in the USA, Bitcoin miners have redirected power back to the grid to support essential services, including hospitals and households, during severe weather conditions.

Bitcoin ETFs: A Buffer Against Selling Pressure?

Amid this tumultuous period for miners, Bitcoin’s price has surprisingly maintained a steady level around $42,500. This resilience could be attributed to significant buying activity within the newly launched Bitcoin ETFs, which have seen nearly $900 million in inflows in their first four days. This influx of capital into ETFs could be offsetting the selling pressure from miners by facilitating strong purchases of Bitcoin in the open market.

Mining Stocks and Market Opportunities

The repercussions of this selling activity extend to Bitcoin mining company stocks, which have underperformed following a robust rally in 2023. However, a recent research report by Bernstein suggests that the current weakness in mining stocks could present a buying opportunity. The report notes that mining stocks face challenges due to the approval of spot Bitcoin ETFs and the impact of lower Bitcoin prices, leading to additional underperformance.

In conclusion, the recent aggressive selling by Bitcoin miners, coupled with the significant hashrate decline, paints a complex picture of the current state of the Bitcoin network. However, the stability of Bitcoin‘s price and the potential opportunities in mining stocks indicate a market adapting to these shifts, underscoring the intricate interplay of factors influencing the cryptocurrency ecosystem.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628
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