The cryptocurrency market has rebounded from the bottom. This week, the market value of Bitcoin once rose from the bottom of 367 billion US dollars to more than 420 billion US dollars. The panic index also got rid of the swing below 20 for nearly a month and returned to the level above 20. Although it is still at the extreme panic level, it shows a signal of reversal of confidence in the market.
Miners take advantage of the rebound to sell?
Even if there is a suspected turning point in the market, the Crypto Quant column report shows that Bitcoin miners seized the opportunity to rebound, dumping at least 4,300 Bitcoins in two weeks, and at the same time hinted at hedging against future price downside risks, the report mentioned. , the funds of the mining community have turned to the derivatives financial market, which is suspected to be a signal that Bitcoin may fall.
CryptoQuant columnist M_Ernest: Miners continue to move to the derivatives market, and miners’ reserves have decreased by 4,300 BTC in the past two weeks, which may point out that these derivatives market transfers are a hedge against future declines, not just for selling.
According to Glassnode’s recent weekly report, Bitcoin miners‘ income has dropped by 56% since the peak period, and production costs have increased by 132%, which has caused the survival pressure of Bitcoin miners, and many mainstream models have reached the shutdown price.
This evidence is analyzed in the Coingape report that Bitcoin miners are seeking to avoid risks. After the market has clearly recovered, it may be a reasonable way to hedge the market, and this can also explain why miners sold funds to buy Incorporated more derivatives.
Before the cryptocurrency bottoms out, indirectly entering the market by investing in mining machines can effectively reduce investment risks.
Post time: Sep-02-2022