Bitcoin’s value against the US dollar has lost 7.3% in the past 24 hours after more than $600 million was withdrawn from the $1.07 trillion crypto-economy. Statistics show that a number of bitcoin miners have capitulated over the past two weeks, selling 5,925 bitcoins worth millions, according to data from cryptoquant.com.
More than 6,100 bitcoins sold since the first of the month, after a brief pause of miners’ capitulation
Bitcoin’s US dollar value fell from $23,593 per unit to $21,268 per coin as of 8:30 a.m. (EST) Friday morning. Over $600 million was wiped from the crypto-economy in the past day as BTC lost 7.3% and ETH lost 7.4%. A number of other coins lost value against the US dollar as well as BNB fell 5%, XRP fell 9% and ADA lost 10.3% in the last 24 hours .
According to data from cryptoquant.com share by Ali Martinez bitcoin miners have capitulated in the last 14 days. “Bitcoin miners appear to have benefited from the recent rally in book profits,” Martinez said. “The data shows that miners sold 5,925 BTC in the past two weeks, worth around $142 million.”
Following Martinez’s tweet, data from cryptoquant.com shows that over 6,100 BTC have been sold since August 1. The web portal Miners Position Index says bitcoin miners are “moderately selling” bitcoin. Using current crypto market values, 6,100 BTC equals $130.80 million, a value well below Martinez’s listing price.
Miners took a break from selling BTC after a surge of mined bitcoins was sold in the two months leading up to August 1, 2022. A Blockware Intelligence newsletter published on July 29 explained that the end of the miners’ capitulation was near. “According to the hash tape metric, Bitcoin is 52 days away from a miner’s capitulation,” the Blockware newsletter said. The Blockware report added:
The end of a miner’s capitulation historically marks a bear market bottom.
In the first two weeks of August, it looked like the miners’ capitulation was over and BTC managed to mine $25,212 per unit on August 14th. BTC has lost 14.58% since the August 14 high and is currently down 69% from the price of $69,044 per unit. recorded on November 10, 2021. Last week, bitcoin mining difficulty increased by 0.63%, making it harder for miners to discover BTC blocks and with lower prices, bitcoin mining is less profitable today than it was five days ago.
Bitcoin Hashrate Skyrockets 46% in Last 24 Hours on Recent Difficulty Increase
Despite the increase in difficulty, after dipping below the 200 exahash per second (EH/s) zone at 182.40 EH/s on the eve of August 18, 2022, BTC’s hashrate soared to 267.40 PE/s. That’s a 24-hour increase of about 46.60% above the 182 PE/s recorded on Thursday afternoon (EST).
Using the current difficulty setting, the current market value of BTC, and a cost of around $0.12 per kilowatt-hour (kWh), a Bitmain Antminer S19 XP with 140 terahash per second (TH/s) can earn an estimated profit at $4.85 per day. The Microbt Whatsminer M50S launched in July with 126 TH/s can earn an estimated profit of $2.74 per day according to current market statistics.
What do you think of the miners who have sold 5,925 bitcoins in the past two weeks? Do you think the miners’ capitulation is over or will it continue? Let us know what you think about this topic in the comments section below.
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