Mining Economies: A Potential Turnaround for Miners
New data from CryptoQuant suggests a decrease in selling pressure from Bitcoin miners, indicating a potential positive trend for BTC and the broader market in the near future.
Understanding the Mining Landscape
– Bitcoin halving event’s impact on mining operations led to decreased profitability
– Miners sold BTC to sustain operations post-halving
– Large miners like Marathon Digital faced record-low profitability
– Selling pressure from miners decreased recently, according to CryptoQuant’s data
Potential Market Rebound
– Reduced selling pressure could boost Bitcoin’s price and trigger a market rally
– Marathon Digital’s significant decrease in Bitcoin sales in recent months
– Continued absorption of sell-offs may lead to market stabilization and growth
Industry Developments
– Phoenix Group’s oversubscribed $370 million IPO on the Abu Dhabi Stock Exchange
– Operations include Bitcoin mining, colocation hosting, and ASIC machine distribution
– Hashrate capacity of 13.9 EH/s with a presence in North America and the Middle East
– Projected revenue of $247 million and EBITDA of $172 million for fiscal year 2023
– Revenue heavily relies on hardware sales, particularly through distribution agreements with Bitmain and MicroBT
Hot Take: Opportunity for Miners
With a potential positive shift in the mining landscape, miners could see improved profitability and market conditions as selling pressure decreases, paving the way for a potential market rebound.
Sources:
– [CryptoQuant](https://cryptoquant.com/)
– [TheMinerMag](https://blocksbridge.substack.com/p/ai-bitcoin-stand-off-is-on)
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