Bitcoin
Major Bitcoin Miners Are Not Capitulating
Read U.TODAY at
Google News
According to Julio Moreno, head of research at cryptocurrency analytics firm CryptoQuant, the largest miners are currently in accumulation mode.
Meanwhile, smaller miners have been on a selling spree since the last halving event, which took place in April.
As Moreno noted, this “makes sense” as large publicly traded mining companies have reported larger reserves. Meanwhile, some of these companies are even buying Bitcoin.
As reported by U.TodayCryptocurrency mining giant Marathon Digital recently acquired $100 million worth of BTC as it adopts a “full HODL” strategy. The company intends to hold onto the coins it produces while also making additional purchases.
Bitcoin miners have had to adapt to the post-halving environment. Earlier this month, the Financial Times reported that some Bitcoin miners are also turning to artificial intelligence due to declining profitability. Core Scientific is among the major mining companies currently pursuing AI deals.
However, despite the challenges the mining industry is currently facing, Bitcoin’s seven-day average hashrate recently reached a new all-time high of 677 EH/s.
Rising Bitcoin prices have helped cushion the blow of the block reward halving. As reported by U.TodayThere has been a major spike in miner profitability due to the ongoing uptrend. Recently, the cryptocurrency came close to reclaiming the $70,000 level once again.
At press time, Bitcoin is trading at $66,572. The price of Bitcoin has recently fallen renewed selling pressure due to recent transfers made by the US government. However, analysts believe that the US is unlikely to liquidate these coins in the near future, as they were likely transferred for safekeeping purposes.
About the author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to the burgeoning industry — from price analysis to blockchain disruption. Alex has authored over 1,000 stories for U.Today, CryptoComes, and other fintech media outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets, and can be reached at alex.dovbnya@u.today.