Bitcoin Network Turns Red Following the Bull Run

Miners’ bitcoin selling continues on as they see increasingly healthy profit margins.

The crypto market has turned red over the weekend.

Altcoins are recording losses in tandem with Bitcoin, which dropped to nearly $15,700 level today.

At the time of writing, we are still just under $15,815 but in red by over 2.77%, with volume also down at $2.03 billion.

Much like the price, which could now be in consolidation after surging 45% in the last month, the network fundamentals are also in decline.

image2
Source: ByteTree

However, transaction count is still slightly up along with the miners’ bitcoin selling, which is a good thing. Interestingly, miners see increasingly healthy profit margins thanks to the recent rally.

Alongside the price rise, more mining operators launched, and more resources were dedicated to mine BTC that pushed the network hash rate to a new all-time high in October.

As we reported, in recent weeks, the end of the wet season in China pushed up electricity costs. “With mining hash rate and difficulty at all-time highs and electricity costs rising, miners saw their input costs rise, which compressed mining margins eventually leading to the most recent hash rate decline,” noted TradeBlock.

But now again, at lower difficulties, miners are estimated to be back at healthier margins, especially as the market price of bitcoin continues to push higher.

image1
Source: TradeBlock

Although the market seems to have calmed down, for now, it is not clear if a big pullback as expected will come. As we saw with the S&P 500, when QE was first introduced this year, the equity market traded at multiples to its new highs.

Moreover, the aggregate futures open interest (OI) has topped the $6 billion mark. Even on OKEx, OI is creeping through the $1.1 billion mark despite the unresolved withdrawal issues. However, it is worth noting that the Bitcoin mining pool of OKEX has lost almost all of its hash rate, which previously accounted for around 5%, as a result of the withdrawal issues.

“It is this herd like behaviour that also causes over crowded trades and ultimately leads to assets trading at sky high multiples,” noted Denis Vinokourov of Bequant.

Also Read: BTC’s Moon Target Set at $318,000 in Dec 2021 by Citibank Report

Bitcoin (BTC) Live Price

1 BTC/USD =19,218.4548 change ~ 0.39

Coin Market Cap

356.58 Billion

24 Hour Volume

46.46 Billion

24 Hour Change

0.39

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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