We observe that Bitcoin's price has surged above 100k, causing miners' Bitcoins to gain substantial value. As a result of this appreciation, miners have increased their sales activity.
Following a sharp pullback in Bitcoin's price, it entered a correction phase and rose again to the 102k levels, only to trigger another wave of heavy selling. As Bitcoin climbed to 102k, miner positions, which were in a "fairly paid" state, transitioned to an "extremely underpaid" state as selling pressure intensified at that level.
Miners have started to incur significant losses, which will likely strain them psychologically. If we assume the bull market for Bitcoin is not over, this could present a buying opportunity. The stronger miners will continue to persevere, while the weaker ones may shut down and exit the market, unable to recover from their losses.
Written by XBTManager
