$BTC: Morgan Creek Digital Assets Partner Says ‘Miner Capitulation Is in Full Effect’
On Tuesday (29 November 2022), Jason A. Williams, a founding partner of Morgan Creek Digital Assets, and the author of the book “Bitcoin: Hard Money You Can’t F*ck With“, explained why this could be a great time to buy Bitcoin.
Williams told his over 207K Twitter followers:
“BREAKING #BITCOIN MINING NEWS : Miner Capitulation is in full effect. Hash rate dropping off a cliff. Difficulty adjustment incoming as well. BTC sell pressure increasing. Sounds like buying season to me.“
A report by Glassnode and CryptoSlate published on 25 November 2022 said:
“Amidst the chaotic events unfolding around the FTX insolvency, the mining industry is rapidly becoming another area of concern in the market. Mining revenues have experienced a significant reduction in their revenue streams, with production costs up +68%, and coin prices down -76% over the last year.
“Miner balances currently sit at around 78.0k BTC, equivalent to over $1.2B at current BTC prices of $16.5k. Whilst it is unlikely that the entirety of these reserves will be distributed, it provides a gauge on the potential risk. Until BTC prices have cleared some distance above the estimated cost of production level at $17.0k, it is likely that miners are going to be under acute financial stress, and net distributors of BTC.“
Yesterday, crypto analyst William Clemente III, Co-Founder of boutique digital asset research firm Reflexivity Research, said that “Bitcoin miners have been selling relatively aggressively.”
On 21 November 2022, Charles Edwards, Co-Founder of digital asset management firm Capriole Investments, took a closer look at the Bitcoin mining industry in the wake of a very painful crypto bear market that started one year ago.
Edwards took to Twitter earlier today to say:
“It’s a Bitcoin miner bloodbath. Most aggressive miner selling in almost 7 years now. Up 400% in just 3 weeks! If price doesn’t go up soon, we are going to see a lot of Bitcoin miners out of business… What we are seeing is not sustainable. Mine-and-hodl is not a viable strategy as a Bitcoin miner. Miners are paying the consequences of the ‘never selling’ arrogance widespread just 6 months ago. You need to manage (trade) your Bitcoin position constantly in this market… Any strategy which relies on long-term leverage (positions which can’t be exited immediately) ALWAYS blows up in crypto.“
Featured Image via Pixabay
Source: Read Full Article