On Tuesday (29 November 2022), Jason A. Williams, a founding partner of Morgan Creek Digital Assets, and the author of the book “Bitcoin: Hard Money You Can’t F*ck With“, explained why this could be a great time to buy Bitcoin.
Williams told his over 207K Twitter followers:
“BREAKING #BITCOIN MINING NEWS : Miner Capitulation is in full effect. Hash rate dropping off a cliff. Difficulty adjustment incoming as well. BTC sell pressure increasing. Sounds like buying season to me.“
A report by Glassnode and CryptoSlate published on 25 November 2022 said:
“Amidst the chaotic events unfolding around the FTX insolvency, the mining industry is rapidly becoming another area of concern in the market. Mining revenues have experienced a significant reduction in their revenue streams, with production costs up +68%, and coin prices down -76% over the last year.
“Miner balances currently sit at around 78.0k BTC, equivalent to over $1.2B at current BTC prices of $16.5k. Whilst it is unlikely that the entirety of these reserves will be distributed, it provides a gauge on the potential risk. Until BTC prices have cleared some distance above the estimated cost of production level at $17.0k, it is likely that miners are going to be under acute financial stress, and net distributors of BTC.“
In our latest report with @CryptoSlate, we analyse the #Bitcoin mining sector, and how the industry is under immense financial stress
What we find is that $BTC miners are distributing around 135% of mined coins
This means miners are dipping into their 78k $BTC strong treasuries https://t.co/cRuHUVRsjt pic.twitter.com/fvso2v6Lkr
— glassnode (@glassnode) November 28, 2022
Yesterday, crypto analyst William Clemente III, Co-Founder of boutique digital asset research firm Reflexivity Research, said that “Bitcoin miners have been selling relatively aggressively.”
From this morning in case you didn’t see my post re hash ribbons: https://t.co/1iClXeBtyE
— Will Clemente (@WClementeIII) November 28, 2022
On 21 November 2022, Charles Edwards, Co-Founder of digital asset management firm Capriole Investments, took a closer look at the Bitcoin mining industry in the wake of a very painful crypto bear market that started one year ago.
Edwards took to Twitter earlier today to say:
“It’s a Bitcoin miner bloodbath. Most aggressive miner selling in almost 7 years now. Up 400% in just 3 weeks! If price doesn’t go up soon, we are going to see a lot of Bitcoin miners out of business… 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… Any strategy which relies on long-term leverage (positions which can’t be exited immediately) ALWAYS blows up in crypto.“