According to new reports from the crypto industry, the bitcoin miners are rapidly moving their bitcoin positions. In a single 24-hour period, around 14,000 bitcoin worth $300 million have been transferred to personal wallets by miners.
Miners also offloaded the largest amount of bitcoin in the last few weeks and it’s the largest amount since January 2021. Experts called this phenomenon miner capitulation. The current price of bitcoin is $21,600 and has increased around 3% in the last 24 hours. Even though the price of bitcoin has been 70% down from its ever-highest price of $69,000 in November 2021.
In Just One Day, Crypto Miners Moved Almost $300 Million Worth Of Bitcoin
The crypto analyst Joseph Ayoub noted that “Given rising electricity costs, and bitcoin’s steep price decline, the cost of mining a bitcoin may be higher than its price for some miners. With high-profile reports of resignations from mining companies, as well as miners that have used their equipment as collateral to borrow money, the bitcoin mining industry could be under growing pressure”.
Meanwhile, one of the largest Digital assets managers, Grayscale has added around 16,244 BTC to its Bitcoin trust in just one day. Last week, Grayscale has reopened its doors to new investors and just one day after this, they picked up more than 2,000 BTC which is roughly around $82.5 million.
The crypto analysts at JP Morgan Chase and Co said that Grayscale digital assets manager might be a key driving force for Bitcoin’s price. It might single-handedly help the crypto to break above $40,000 in the short term.
“Bitcoin is currently at risk of losing investors that closely follow trends, which could result in a price drop unless it breaks out above $40,000 in the near future. Grayscale’s steady stream of money could assist maintain or grow BTC’s price. For a breakout to occur, Grayscale Bitcoin Trust inflows would need to sustain $100 million per day, JP Morgan Chase analysts said.
“The flow into the Grayscale Bitcoin Trust would likely need to sustain its the US $100 million per day pace over the coming days and weeks for such a breakout to occur”, analysts added.
Grayscale Bitcoin Trust’s Q4 report shows crypto-focused goods attracted $251 million per week. Last quarter, Grayscale saw 43.26 billion invested in its products, or $251 million each week. New data from the blockchain analytics firm CryptoQuant indicates that bitcoin miners are rapidly liquidating their holdings.