In less than 48 hours, the price of #bitcoin fell from about $30,000 to $25,000, prompting large liquidations.
If conditions do not change, another leg of this catastrophe may be in the works, according to a detailed examination of #miner statistics.
Miners are under pressure to liquidate their holdings due to a persistent increase in the hash rate of BTC.
In just a few hours, the collapse in the price of bitcoin to $25,000 has resulted in enormous liquidations for traders. But, this bearish swing of different magnitude can occur again, particularly if BTC's hash rate keeps increasing and the price doesn't bounce back right away. BTC miners may sell their holdings if the pressure is not relieved soon, which would start the second down leg.
The average hash rate for Bitcoin over the past seven days has been approximately 409 million TH/s and is still growing. A higher hash rate would make mining more expensive given the declining value of Bitcoin. Bitcoin miners will be obliged to sell their BTC holdings if this condition is left unmet.
The quantity of Bitcoin owned by miners, or their reserve, likewise rises along with the hash rate. The miner reserve skyrocketed from 1.82 million BTC to 1.84 million during the final leg of the Bitcoin surge, which took the price from about $26,000 to $31,500.
The 200,000 BTC, which arrived after the most recent crash, is now being held by miners. These Bitcoins might move to exchanges and be sold there if the situation does not get better for the miners.
Investors should exercise caution and closely monitor the Bitcoin price as a result. A selloff can occur if the rebound rally drags on while the interest rate is still high.