Bitcoin and Market Volatility Concerns
Amid Bitcoin’s drop below $57,000, investors are anxious about potential market volatility and its impact on miners. Speculators selling pressure caused Bitcoin to dip below $57,000 for the first time since February, raising concerns among retail traders about the cryptocurrency’s stability.
Crypto Beginners and Selling Pressure
CryptoQuant reported that beginner investors who acquired BTC in the past few months are now moving their coins during the market plunge, creating increased selling pressure. Approximately $2.4 billion worth of BTC controlled by these beginners is being mobilized, indicating their inclination to sell at current market prices.
Miners’ Challenges and Hashprice Decline
Mining operations are facing challenges as the hashprice, representing miner revenue per terahash, has drastically dropped. Hashrate Index highlighted that the hashprice hit an all-time low during Bitcoin’s decline, prompting some miners to consider liquidating their reserves to cover operational costs. This situation could potentially lead to miner capitulation if prices do not recover significantly in the coming months.
