BTC Is Drowning In The Red Sea! Continued Selling Begins Among BTC Miners?


 The recent fall in the price of bitcoin has brought disaster to bitcoin miners. In the wake of the events that befell the FTX crypto exchange, groups of crypto miners had to resort to selling their holdings to cover expenses.

In the past three weeks, Bitcoin (BTC) miners have increased their selling pressure by 400%. This indicator has reached new highs not seen since the bottom of the 2015 cycle, almost 7 years ago.

Charles Edwards, founder of Capriole Investments, a quantitative Bitcoin and digital asset fund reveals the challenges and hardships of BTC mining.

Edwards presented a chart showing the price of Bitcoin (BTC), mining expenses (log scale), and the amount of Bitcoins (BTC) sold by miners. Recent indications show that the entire segment is having a tough time.


What we are seeing is not sustainable. Mine-and-hodl is not a viable strategy as a Bitcoin miner. Miners are paying the consequences of the "never selling" arrogance widespread just 6 months ago.

You need to manage (trade) your Bitcoin position constantly in this market.

— Charles Edwards (@caprioleio) November 21, 2022

According to him, if the price of Bitcoin does not improve in the next few weeks, many miners will be forced to stop operations due to huge losses.

He argues that the mine and hold strategy is not a sustainable strategy for Bitcoin miners. Miners had to pay the consequences of adopting such strategies before. Belia is of the view that miners should trade continuously in this market.

Furthermore, this difficult period shows that Bitcoin mining can no longer be considered "passive income." Miners should reevaluate their strategies to avoid going bankrupt.

Charles Edwards reported earlier this month that Bitcoin (BTC) appears to be experiencing a severe selloff. According to reports, Australian mining firm, Iris Energy, was forced to close operations due to default on loans due to insufficient cash flow. This makes the challenges and difficulties more apparent, which could influence the coming weeks.