Bitcoin miners are currently experiencing significant financial pressure, raising concerns about potential sell-offs of BTC.
According to a recent report by CryptoQuant, miners are “extremely underpaid” as current market conditions challenge their profitability.
Despite these financial strains, CryptoQuant’s analysis reveals that Miner Selling Power remains near historical lows. This indicates that even with reduced profitability, miners currently possess a limited amount of Bitcoin ready for immediate liquidation. The implication is that while the financial strain on mining operations is a tangible concern, the structural risk of a massive sell-off from miners is currently constrained. This situation could change, however, if miners manage to rebuild their reserves or if their external funding sources begin to dry up.
CryptoQuant’s interpretation is based on key metrics such as Miner Profit/Loss Sustainability and the log-scaled Miner Selling Power. These indicators suggest a nuanced situation where underlying financial stress exists, but the immediate capacity for large-scale selling by miners is limited.
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Bitcoin Miners Under Pressure: Limited Sell-Off Risk Despite Financial Strain, Says CryptoQuant
Bitcoin miners are currently facing significant financial challenges, according to a recent report by on-chain analytics firm CryptoQuant. The analysis indicates that miners are “extremely underpaid,” a situation that typically raises concerns about increased selling pressure on Bitcoin’s price.
However, CryptoQuant’s data offers a crucial counterpoint. Despite facing real financial pressure, the firm’s “Miner Selling Power” metric remains near historical lows. This key insight suggests that even if miners are struggling, they hold limited Bitcoin reserves available for immediate liquidation.
The interpretation of this dual observation is significant for the market. While the financial squeeze on mining operations is undeniable, the structural risk of a substantial Bitcoin sell-off directly from miners appears limited. This holds true unless miners can rebuild their BTC reserves or if their external funding sources unexpectedly diminish. CryptoQuant’s report specifically highlights two key charts for this assessment: Miner Profit/Loss Sustainability and Miner Selling Power (log-scaled).
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-miners-face-financial-squeeze-but-selling-pressure-remains-low/