Miners are starting to surrender again. While Bitcoin is trading around $74,000, the production costs for many miners are well above that. According to some reports, when calculating the average cost per share, it’s close to $87,000. This gap is putting miners in a difficult position.



This gap between price and cost means miners are forced to sell their Bitcoin holdings. Normally they want to hold, but due to cash flow needs, they are releasing supply into the market. That’s why, in recent days, the volume of surrendered Bitcoin by miners has increased.

The problem is: as miners try to recover their investments, the supply of Bitcoin on the network increases. This can put downward pressure on the price. This cycle may continue until mining profitability improves.
BTC-0.62%
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