Matrixport, a provider of crypto-related services, indicated that the current market pressure faced by Bitcoin (CRYPTO: BTC) at the $28,000 mark could be attributed to miners needing to liquidate their newly acquired assets.
This necessity for liquidation, Coindesk reported, is due to the thinning profit margins observed in recent weeks. The mining landscape has become intensely competitive and often yields no profit, as a result of the ongoing surge in the complexity of Bitcoin mining, according to Matrixport's report.
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This complexity, defined as the ease with which miners can unearth a new Bitcoin block, recorded an unprecedented peak earlier this week.
"With the consideration of the current cost of inputs and anticipated output revenues, most machines that were manufactured prior to 2022 seem to be yielding no profit," explained Markus Thielen, who leads Matrixport's research team.
This unfavorable situation is prompting miners to offload their Bitcoin assets at the existing market value, rather than waiting for a potential price upsurge, as predicted by Matrixport.
The report further commented, "There's a substantial potential for profitability growth among miners, which could multiply by four if there's a minimum increase of 10% in Bitcoin prices."
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