According to crypto analyst Miles Deutscher, one of the significant challenges currently facing Bitcoin is the increasing pressure from miners to sell their Bitcoin holdings.
Over the past year, the Bitcoin hash rate has continued to rise steadily, reaching an all-time high in the history of Bitcoin. The hash rate has surged from approximately 170 EH/s at the end of 2021 to its current level of 400 EH/s. This increase in hash rate, which represents the computational power needed to solve complex cryptographic puzzles, indicates a greater number of miners participating in the validation of transactions.
While a high hash rate is beneficial for network security, this peak in hash rate, coupled with higher mining difficulty and rising energy prices, is expected to significantly impact mining profitability. This effect will become more pronounced after the next rewards halving scheduled for 2024, placing even more pressure on miners, potentially necessitating the sale of Bitcoin to secure capital.
Glassnode estimates that the amount of BTC being sent to exchanges by miners has already reached an all-time high level, further highlighting the increased selling pressure from miners.
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