BTC falls below $20,000: When will the bear market end by miners selling coins to survive?

Ups and downs, Bitcoin fell below $20,000 again since June 23.

Under the bear market, the cryptocurrency market struggles to survive.

Shut down and sell coins, miners are hard to bear

With the hash rate remaining at an all-time high and BTC hovering around $20,000, miners are struggling to break even.

Intheblock data shows a significant increase in miner exodus since June 12, indicating that they are moving funds to exchanges for sale.

Eo4cKmQXQbXDsu6XCXzoeC4iwmBpdtZonb5ebawB.pngBased on the current situation, some mining machines including Whatsminer M10 series, M21S, Avalon 1066 Pro, etc. have reached the shutdown price; Ant T17 series is on the verge of shutdown.


The price of some mining machines

JPMorgan’s strategy team led by Nikolaos Panigirtzoglou recently released a report saying that if bitcoin miners fail to improve profitability, they will choose to continue to sell bitcoin to meet ongoing costs or deleveraging, which may continue until the third of this year. quarter.

At present, pressures such as soaring global electricity costs and a general decline in the crypto market are hitting the profitability of crypto miners, who are trying to increase profits by cutting costs and selling some bitcoins. In addition, bitcoin miners face creditors and other Intense pressure from counterparties, miners who borrowed their funds through highly leveraged loans, could trigger an even larger chain reaction, leading to the bankruptcy of cryptocurrency lending service providers and hedge fund firms.

When does the bear market end?

In the face of the bear market, 21 SharesAG (21Shares), a cryptocurrency trading platform trading product (ETP) issuer, announced the launch of the Crypto Winter Suite, a product that helps investors survive the bear market. Investors want long-term returns. The first investment product introduced in the kit is 21Shares Bitcoin Core ETP (CBTC), which will provide low-cost Bitcoin exposure and is currently the lowest-cost Bitcoin exchange product in the European market, with a fee rate of just 0.21%.

Still, the market’s biggest concern is when the bear market will end.

FTX founder SBF tweeted that the crypto bear market will get better because of its “suddenness.”

Binance founder CZ said that although people think bitcoin is a low price of $20,000 now, if people were told four years ago that bitcoin would reach $20,000 in 2022, they would be very happy, and bitcoin may be at $20,000 Stay below the all-time high of $69,000 for the next two years. CZ also said that considering this price drop, from the all-time high of $69,000 to the current $20,000, it may take a while to recover. This may take months or years. But no one can predict the future.

NBA Dallas Mavericks owner Mark Cuban said the cryptocurrency bear market won’t end unless people focus better on utility applications.

Mark Cuban said the market hasn’t bottomed out yet. A greater focus on applications with utility will keep the cryptocurrency market out of a downturn. Given that there are so many apps currently focused on fintech or collectibles, launching a business-focused app would be one of the events that would trigger a market reversal. He also believes that the merger between different protocols and blockchains will eventually witness the consolidation of the crypto industry, as “this is what happens in every industry.”

American rapper Snoop Dogg recently spoke to CNBC about the current “crypto winter,” saying: “Every great industry has its downturns, alcohol, tobacco, clothing, food … and every other industry you can think of has had it. Depression, this bear market will weed out those who shouldn’t be in crypto and abusing the opportunity of the crypto market, then will bring great business, and the crypto industry will move forward, and when the bull market comes back, only great things will stay .I know NFTs have a great chance to shine in the music industry because sooner or later record labels will come in and musicians will understand that it is better to put their work on the blockchain.”

Posted by:CoinYuppie,Reprinted with attribution to:
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