Prices plummeted, computing power dropped sharply, data tells you whether BTC miners are selling?

On Tuesday, data analysis website TheTokenAnalyst reported that Bitcoin experienced a historic plunge this month and its computing power also dropped significantly. However, according to data statistics on the addresses of many miners holding coins, many large miners did not sell their bitcoins.

The COVID-19 outbreak has hit the global market, with global stock markets, crude oil, and gold all experiencing a plunge. Bitcoin also experienced a sharp drop on March 12 and March 13, with a 24-hour drop of 50%. The drop in Bitcoin prices directly broke through the shutdown prices of various mining machines. There are reports that many miners are likely to temporarily cash out. Historically, Bitcoin sell-offs led by miners have occurred before.

However, statistics show that the cumulative balance of Bitcoin in miners' wallets has not shown a significant decline.

Considering the market supply and demand situation after the halving, many miners are reluctant to sell their bitcoins at low prices, especially those miners equipped with high-performance mining machines. They still have room for profit when the price of the currency falls to between US$3,600 and US$5,700.

TheTokenAnalyst developer JToken recently gave more detailed data on Twitter, including the Bitcoin balances of major mining pools such as Ant and BTCtop. With the recent Bitcoin plunge, the Bitcoin holdings of the top mining pools have declined to a certain extent, but have not reached a risky range.

He added that although the computing power of Bitfury, BTCtop and viaBTC mining pools has temporarily decreased, the magnitude of the decrease will not have a huge impact.

He also emphasized that the amount of coins held by miners is about 10,000, while the amount held by exchanges is two orders of magnitude higher than that of miners. During market fluctuations, we should pay more attention to the transfer of Bitcoin in and out of exchanges.

It is worth noting that the financial services of the mining industry are also constantly developing and improving. Many financial service companies have provided collateral loans and financial derivatives services for miners. The reduction in the amount of coins held by miners is likely to be used for collateral. After all, selling at a low price is indeed a bad idea. And under the hedging of financial derivatives such as options, miners obviously have a stronger tolerance for the risk of price fluctuations. As Yang Xiao, COO of Panda Miner, said at the first mining forum of "Wind Rises Again 2020-Babbitt Global Partner Cloud Summit" hosted by Babbitt, miners in the new era are no longer just long investors, but still need to learn to use more financial derivatives to protect their own interests. If there is a shortage of cash flow, you can also avoid being forced to sell coins and miss out by using currency loans. However, any financial instrument has two sides. You must have a prejudgment of risks and leave room for error before using financial instruments.

On March 26, Bitcoin will finally have its mining difficulty adjusted. As of 10 a.m., Bitcoin still has one hour left before the next adjustment. According to the predicted difficulty adjustment, the mining difficulty will drop by 15.96% to 13.91T. I believe miners can breathe a sigh of relief.