• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
No Result
View All Result
Breaking News: Breaking: CoWSwap Loses $150,000 In Exploit
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Breaking: CoWSwap Loses $150,000 In Exploit
bitcoin network

Bitcoin’s Biggest Intra-Market Risk Right Now – What You Need To Know

Jake Simmons by Jake Simmons
4 months ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

The monetary policy of the Federal Reserve (FED) continues to be the all-determining factor for both the financial markets worldwide and Bitcoin. With this in mind, all eyes are currently on November 02, when the next Federal Open Market Committee (FOMC) meeting is scheduled.

However, while this is an external market risk, there is also an internal market risk currently developing that should not be underestimated from a historical perspective: a Bitcoin miner capitulation.

The lower Bitcoin falls and the longer the price stays at the current level, the more pressure is put on Bitcoin miners’ margins by a divergence of price and hash rate.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!
Related Reading: Bitcoin Price Is Forming A Key Trend and Swift Rally Could Occur

Bitcoin’s Mining Difficulty Reaches A New ATH

A look at the Bitcoin mining difficulty adjustment that took place yesterday shows that it increased again by 3.44%. This follows the historical adjustment of October 10, when the mining difficulty increased by 13.55%.

#Bitcoin mining difficulty has just increased by +3.44%, making another new all time high as hash rate continues to soar.

Miners are relentless. pic.twitter.com/4GEyHxYoZ8

— Dylan LeClair ? (@DylanLeClair_) October 24, 2022

The difficulty is updated approximately every two weeks to account for the fluctuating hash power on the network and to ensure a minting of new Bitcoins approximately every 10 minutes (block time).

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Yesterday’s adjustment is thus likely to put further pressure on already struggling miners who are seeing dwindling profits. Will Clemente, co-founder of Reflexivity Research, asserted that “miners are the biggest intra-Bitcoin market risk right now IMO”.

A compelling theory for the steady rise in the hash rate, he says, is that a well-funded player is trying to squeeze out inefficient miners and acquire their assets on the cheap, “Rockefeller-style”.

Related Reading: Data: Bitcoin Whales Who Accumulated At $18k Have Continued To Hold Strong

As a result, a miner capitulation could occur. During this event, the non-profitable miners would have to sell both their mining hardware and their holdings of Bitcoins. On a large scale, this could trigger a significant selling pressure on the Bitcoin price, as seen with past miner capitulations.

Clemente stated that the likelihood of a second miner capitulation after the first period in June is rising. The leading indicator to watch are the hash ribbons.

Bitcoin Hash Ribbons
The likelihood of a second Bitcoin miner capitulation is rising. Source: Twitter

Clemente concluded:

Thinking about who this entity(s) is that feels that it’s advantageous to mine with BTC price down 70%, energy prices high, & hashprice at all-time lows. Wonder if its a large player(s) with excess energy or access to dirt-cheap energy. […]  That’s why I’m so curious because this would have to be someone with extremely low energy costs. Haven’t seen any great answers thus far.

Big Name Bitcoin Miners In Trouble?

Dylan LeClair, senior analyst at UTXO Management and co-founder of 21stParadigm also noted that the hash price, or miner revenue per TeraHash, recently passed the 2020 all-time low. If history repeats from previous bear markets, the price decline has just begun, he said.

In addition, he revealed that he has heard “some juicy rumors flying around about some big name Bitcoin miners being in trouble here”.

The continued mounting pressure on Bitcoin miners can end in two scenarios, according to him. Either this is the bottom. “The lack of vol shows apathy from sellers. Extended consolidation/accumulation period,” LeClair stated.

However, the scenario considered more likely by the analyst is that BTC has currently reached a level like $6,000 in 2018/2019. If hash rate continues to soar, then the increasing pressure will result in a miner capitulation event.

At press time, the BTC price continued to lack volatility and lingered around $19,300.

BTC USD
Bitcoin trading sideways. Source: TradingView
Tags: bitcoinbtc
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Jake Simmons

Jake Simmons

Related Posts

Bitcoin

Half Of All Bitcoin Unmoved In 2 Years: What Does This Mean For The BTC Price?

15 hours ago
This Bitcoin On-Chain Metric Is At A Historical Resistance, Will BTC Decline?

This Bitcoin On-Chain Metric Is At A Historical Resistance, Will BTC Decline?

20 hours ago
Bitcoin

Bitcoin Small Addresses Have Been Rapidly Growing, Here’s What It Means

1 day ago
Bitcoin Network

Craig Wright Wants His $2.5 Billion, Demanding For a Bitcoin Hard Fork

4 days ago
Bitcoin

Don’t Get Too Greedy On Bitcoin, Analyst Suggests, Here’s Why

4 days ago
bitcoin price bear

Will Bitcoin Price Return To $20,000? Here’s What Investors Expect

4 days ago

Premium Partners

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Metaspins

Metaspins

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
Coinplay

Coinplay

Review · Visit
mBit

mBit

Review · Visit
Vave

Vave

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
Coinplay

Coinplay

Review · Visit

SEC Calls for Bitcoin (BTC) and Ethereum (ETH) Regulation As Snowfall Protocol (SNW) Presale Ends on a High Note

February 8, 2023

Chainlink (LINK) and Orbeon Protocol (ORBN) Outperform the Market, Experts Predict Big Growth in 2023

February 8, 2023

ALTCOIN DAILY TO PRODUCE AND STAR IN NEW “SHARK TANK OF CRYPTO” TV SHOW, KILLER WHALES

February 7, 2023

SinVerse Studios Announces $1 Million Buyback Program for the SIN token

February 7, 2023

Join the Revolution: Invest in STARSTAKING for 25% APY and the Chance to Win Big with the DeFi Lottery Program

February 7, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.