Bitcoin Miners ‘Next Trigger’ for BTC Price Crash as Outflows Hit Multi-Month Highs

Bitcoin (BTC) miners could form the next BTC price “trigger” as withdrawals intensify, a study warns.

In a quick-take post for on-chain analytics platform CryptoQuant on Nov. 10, contributor MAC.D suggested that miners could soon face “bankruptcy.”

Investigation: Network State ‘Strangles’ Miners

After BTC/USD fell 20% in a few days, miners started operating at higher costs than block subsidies and transaction fees earned.

As a result, mining rigs sit idle and miners sell BTC to cover costs.

“BTC security is at an all-time high, but its mining volume is gradually declining. This will strangle miners,” explained MAC.D.

He noted an outflow from miner wallets of over 5,400 BTC on November 9 alone.

Going forward, the situation could worsen if major mining companies end up selling large amounts of stored BTC as a way to pay off their debts.

“There has already been a lot of news about Nasdaq-listed mining companies failing to pay their debts.

“Therefore, we need to keep an eye on the miner payout schedule, and if miner payouts increase, BTC could fall further.”

Still, a ray of hope could shine in the immediate aftermath of such a massive surrender. Historically, there has been a correlation between miner wipeouts and BTC price troughs.

“However, past miner bankruptcies have formed a bottom for BTC,” the post concludes.

“So if you go bankrupt, you should use it as an opportunity to buy BTC.”

Mining costs outweigh profits

Meanwhile, journalist Colin Wu says even the most popular Bitcoin mining machines are not currently profitable.

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“F2POOL shows that bitcoin mining machines such as Whatsminer M30S and Antminer S17Pro have fallen below shutdown prices as BTC has fallen 20% in the last seven days,” he said. murmured On the day, we are linking to f2pool, the main mining pool.

“Top bitcoin mining machines such as Ant S19 XP also account for 56% of electricity bills.”

Charles Edwards, chief executive of asset management firm Caprior, also pointed out that at current prices production costs are unacceptable compared to miners’ income.

“A lot of bitcoin miners are off rigs right now,” he said. commented on the chart.

“Bitcoin’s electricity bill has been breached for the second time in just five years. The average miner’s electricity bill is higher than their income.”

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