Seasoned Bitcoin (BTC) researcher Charles Edwards shares apocalyptic prediction for bulls
Analyst Charles Edwards, founder of the Capriol Investments Quantitative Fund and author of several insightful crypto economics models, revealed that bitcoin (BTC) miners are not selling so aggressively since Q4, 2015.
“Bitcoin miner bloodbath”: Charles Edwards on miner-driven BTC sell-off
Mr. Edwards shared the charts of the Bitcoin (BTC) price, mining expenses (log scales) and the amount of Bitcoins (BTC) miners are offering for sale. It looks like the entire segment is going through some tough days.
Bitcoin (BTC) miners have increased their selling pressure by 400% over the past three weeks, since the first rumor of FTX/Alameda’s bankruptcy. This metric has risen to levels unseen since the bottom of the 2015 cycle.
Mr. Edwards is certain that, if BTC’s price fails to recover in the coming weeks, a lot of miners will be forced to stop operating due to heavy losses.
Furthermore, this painful period signals that BTC mining can no longer be considered “passive income”. Miners should rethink their strategies to avoid finding themselves underwater:
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.
Earlier this month, Charles Edwards revealed that Bitcoin (BTC) seemed overbought based on the Energy Value Model.
Selling accelerates on rocketing hashrate: Possible reasons
Meanwhile, as covered by U.Today previously, both difficulty and hashrate, two most important metrics of Bitcoin (BTC) mining activity, set new historic highs in mid-November.
Yesterday’s adjustment pushed the Bitcoin (BTC) mining difficulty above 36,95 T, while the hash rate reached an impressive level of around 300 EH/s.
Anonymous analyst @BTC_Archive, commenting on Mr. Edwards’ concerns, highlighted that such an imbalance between BTC miner activity and profits should be attributed to whales’ secret energy sources:
The only way I can point to the way dumping is driving up the price is for some very large players to have access to extremely cheap energy entering the mining game in a big way.
Today, Nov. 22, 2022, the Bitcoin (BTC) price revisited its two-year low yet again; the orange coin is now changing hands at $15,700.