The massive collapse of FTX is having an impact on the global digital asset market. According to reports, the market lost more than $100 billion in a matter of days. But, the shockwaves reached the Bitcoin miners. Glassnode reported that Bitcoin miners are experiencing a decline.
The post Bitcoin Miner Price Drops to a New All-Time Low. Will This Impact BTC Prices? CoinGape first published this article
The massive collapse of FTX is having an impact on the global digital asset market. According to reports, the market lost more than $100 billion in a matter of days. But, the shockwaves have reached Bitcoin miners.
Bitcoin miners are worried about a possible decline
Glassnode reported that Bitcoin miner hash prices have fallen to an all-time low. It currently stands at $58.3K for each Exahassh per Day. BTC prices have fallen by more than 76% since the peak. The mining industry is under tremendous pressure due to the BTC price drop.
The Bitcoin miners were urged to distribute more BTC following the FTX news last week. According to the data, miners transferred an additional 8.25K bitcoins to strengthen their balance sheets. The miners’ treasuries now hold around 78K BTC. It has also stopped all balance growth for 2022.
Data shows that Bitcoin miners spend at an astounding rate of 135% of daily issued coins. This means that miners distribute all 900 newly minted BTC. They also distribute additional 315 BTC daily from their treasuries.
BTC prices drop by 13%
Bitcoin prices have fallen by 13% over the past 30 days. At press time, BTC trades at an average price $16,765.17. Its market capitalization has fallen to $322 billion.
According to Glassnode, miners were forced to liquidate 9.5% of their treasuries over the past week. They have spent 7.7k BTC. This is the sharpest monthly decline in miners since 2018. This is a testament to the pro-cyclical nature Bitcoin miners.
Coingape reported earlier that institutional investors were selling Bitcoin holdings during the FTX crisis. Grayscale Bitcoin Trust Fund (GBTC), the largest cryptocurrency fund in the world, is trading at a negative premium of 40%.
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