Recent macros show that the Crypto market continues to struggle for support, as miners selling pressures increase with lacklustre institution demand and stiff crypto regulations.
The pioneer Crypto was struggling to maintain $35k prices on the FTX exchange, which had a daily trade volume of approximately $35 billion. Bitcoin currently has a market capitalization of $643 billion.
Bitcoin bulls appear to be feeling exhausted, as mining hash power continues to plummet off the blockchain during the largest Bitcoin miner migration in history.
According to market pundits, around 90% of China’s bitcoin mining capability will be shut down. The Sino-country contributes about 65%-75% of global bitcoin mining.
The biggest Bitcoin hash-power migration is now underway. Crypto pundits have been weighing in on the implications, especially as to whether Bitcoin miners’ sell pressures might cause significant ripples in Bitcoin price.
Recent macros indicate that Bitcoin miners are experiencing increased selling pressures due to a sudden drop in revenue following the 50% mark-down in Bitcoin prices. This has led to more Crypto assets being sold to pay their fiat denominated fees.
Bitcoin miners who are trying to relocate from China, or sell some of their hardware such as mining equipment, have had to pay logistics costs and take on risk.
Market commentators also anticipate that such costs will continue for some time.
Glassnode data shows that the Bitcoin mining market has seen a 65.5% drop in revenues from March and April.
At the moment, the average 7-day Bitcoin mining revenue is around $20.7 million/day. This is 154% more than it was during the back-toback halving last year.
Despite the Chinese regulator’s sudden clampdown on Bitcoin miners, small-scale hydroelectric power plant owners in the second-largest country are trying to sell their assets.
Sichuan province is home to a significant amount of these power-generating plants. This province is a key Chinese Bitcoin mining center known for its abundant water resources and ability to provide inexpensive electric power.
This narrative has had a negative impact on the flagship crypto, with Beijing adopting a hard stance against cryptocurrency, deeming them unstable and speculative as well as high systemic risk.