[Analysis] "Bitcoin Miners Likely to Sell in Large Quantities…A Good Buying Opportunity"

Image=CryptoQuant

An analysis has emerged suggesting that Bitcoin (BTC) miners are likely to sell in large quantities as their profitability enters the 'extremely low profit' zone.

On the 7th (local time), CryptoQuant author Darkfost stated, "Bitcoin miners' profitability has entered the 'extremely low profit' period. The mining difficulty increased due to the impact of the fourth halving last April, and the hash rate increased, intensifying mining competition. At the same time, as the Bitcoin price showed a downward trend after reaching a new high, profitability decreased while mining costs rose."

The author continued, "Therefore, miners are likely to sell their held Bitcoins in large quantities. In fact, the amount of Bitcoin miners are sending to exchanges is increasing, which could add additional selling pressure to the market. However, past cases show that after the miners' selling pressure peaks, a medium-term price rebound occurred. Historically, miners' sales have also provided good buying opportunities," he explained.