Why the more BTC drops, the more Bitcoin miners may have to sell BTC?
Miners use computers to create Bitcoin and receive BTC as a reward. But to keep the machines running, they have to pay for electricity, equipment, personnel, and daily operating costs.
When the price of BTC is high, selling a small amount of BTC is enough to cover expenses. But when the price of BTC falls, profits shrink, and some miners will have to sell more BTC to keep operations running.
If many miners sell at the same time, the market will receive an additional supply of BTC to sell, which may create further pressure on the price.
Therefore, when the market is weak, besides whales and ETFs, the flow of BTC from miners is also something worth monitoring for price movements.
Miners use computers to create Bitcoin and receive BTC as a reward. But to keep the machines running, they have to pay for electricity, equipment, personnel, and daily operating costs.
When the price of BTC is high, selling a small amount of BTC is enough to cover expenses. But when the price of BTC falls, profits shrink, and some miners will have to sell more BTC to keep operations running.
If many miners sell at the same time, the market will receive an additional supply of BTC to sell, which may create further pressure on the price.
Therefore, when the market is weak, besides whales and ETFs, the flow of BTC from miners is also something worth monitoring for price movements.