Bitcoin miners selling output at $28K Matrixport.
According to a report by crypto-services provider Matrixport on Friday, Bitcoin (BTC) is facing selling pressure at the $28,000 price level, and this could be due to miners being forced to sell their new inventory because of compressed profit margins in recent weeks.
The report states that mining has become very competitive and often unprofitable due to the continuous increase in bitcoin miner difficulty. Markus Thielen, head of research, wrote that at the current input cost and potential output revenue expectations, most of the machines produced before 2022 appear to be unprofitable.
This means that instead of holding on until prices increase, miners are forced to liquidate their inventory at the current level. However, Matrixport predicts that there could be significant upside convexity for miners if bitcoin prices increase by 10% or more, which could increase profitability fourfold.
For more information, read: Crypto Market Near-Term Upside Is Likely Capped: Bank of America.
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Edited by Sheldon Reback.