Bitcoin (BTC) is under selling pressure at the $28,000 price level, and miners may be shouldering losses, crypto service provider Matrixport said in a June 2 report. there is
Bitcoin miners are suspected of having to liquidate newly mined tokens as their profit margins have compressed in recent weeks, according to Matrixport.
As the difficulty of mining bitcoin continues to rise, mining has become highly competitive and often unprofitable, the report said. Mining difficulty, a measure of how easily miners can find new Bitcoin blocks, hit an all-time high earlier this week.
“With current input costs and expected revenues, most cars built before 2022 are unlikely to be profitable,” writes Markus Thielen, head of research and strategy.
That means miners will be forced to sell bitcoin at current levels rather than hold out until the price rises, as Matrixport predicts.
However, the report adds that “if the Bitcoin price rises by more than 10%, the profitability of miners could quadruple.”
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Equipment for bitcoin mining (Eliza Gkritsi/CoinDesk)
｜Original: Bitcoin Miners Are Probably Selling Their Output at the $28K Level: Matrixport