Bitcoin Miners Face Selling Pressure as Mining Costs Soar
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Bitcoin miners are facing a major challenge as mining costs continue to rise, forcing them to sell more of their BTC holdings to cover costs, putting significant pressure on the market.
According to an analysis by CryptoQuant's IT Tech, Bitcoin is currently struggling to recover from recent lows, largely due to selling pressure from miners. As BTC fell to $77,000, the number of miners transferring their BTC to exchanges increased significantly, creating a new wave of sell-offs.
Miners, considered forced sellers, are forced to sell BTC to pay their operating bills, which reduces market liquidity. It is worth noting that many miners are selling Bitcoin even as the price falls, which suggests that they are facing significant financial pressure. One of the main reasons for this is that the average cost of mining Bitcoin has increased significantly in recent times.
Some analysts believe that if there are enough buyers to absorb the Bitcoin that miners are selling, the price could stabilize and begin to recover. However, if demand is not strong enough to cope with the large supply from miners, the price of BTC could continue to fall. Currently, the second scenario is more likely as analysts predict that Bitcoin could continue to correct and retreat to $70,000.
Recently, Arthur Hayes, former CEO of BitMEX, stated that “BTC could bottom around $70,000,” while also emphasizing that a 36% correction from its all-time high is normal in a bull market cycle.
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This situation is now further complicated by the emergence of many unstable macro factors, including concerns about tariffs and the global economic situation, directly affecting the uncertainty of the crypto market.
Bitcoin miners continue to struggle to maintain profitability amid rising costs and an unstable market, and this could have a major impact on the price trajectory of BTC in the near future.
