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Strategists at JP Morgan warned this week that miners can create pressure on the price of Bitcoin.
Nikolaos Panigirtzoglou led the group that issued the stark warning on Friday.
“Offloading of Bitcoins by miners, in order to meet ongoing costs or to delever, could continue into Q3 if their profitability fails to improve. That offloading has likely already weighed on prices in May and June, though there is a risk that this pressure could continue,” the strategists wrote.
As of Friday, miners had dumped an amount of 18,251 BTC equivalent to $391,984,027.
Bitcoin had stabilized in recent days, sitting right around $21100 late Saturday morning EST.
Massive Layoffs, Terraform Labs Faces New Lawsuit, Twetch Sells Out Cozy Hoodie
Massive layoffs, Terraform Labs faces new lawsuit, Twetch sells out Cozy... https://t.co/iJr6Z1YR1E via @YouTube
— gambling911 (@gambling911) June 25, 2022
Unless you've been living under a rock these past three weeks, it's no secret that crypto markets have been stressed tested. With panicking investors, the number of crypto liquidations has increased.
As a result, multiple digital currency exchanges have announced layoffs following a series of digital assets pitfalls and plunges in what is often being described as the ‘crypto winter', in the middle of summer for those of us in the northern hemisphere no less.
Meanwhile, another lawsuit awaits Terraform Labs and its founder Do Kwon, who are now accused of misleading investors over the $60 billion wipeout of Luna stablecoin.
More Headlines
This Bitcoin Crash Is A 'Crypto Ice Age' — Here's Why - "It's a crypto ice age," Mizuho analyst Dan Dolev told IBD. "I think this is going to be very deep, very prolonged, and many cryptocurrencies will not survive."
The blowup of supposed "stablecoin" TerraUSD resulted in $40 billion in market value gone practically overnight. This has resulted in accelerated a deleveraging wave that has yet to run its course.
El Salvador’s $425 Million Bitcoin Experiment Isn’t Saving the Country’s Finances - “The country is sleepwalking into a debt default,” said Frank Muci, a policy fellow at the London School of Economics. Speaking to CNBC, he warned that nobody wants to lend money to El Salvador President Nayib Bukele these days unless at rates between 20% to 25%.
“The economic policy of the country is essentially magical thinking,” Muci says. “They’ve spooked the bejesus out of financial markets and the IMF."
Gambling911.com will recall that Bukele bet it all on Bitcoin and a flawed city plan that would have capitalized on the crypto craze right down to the nearby volcano providing an energy source. Forget that the region lacks proper sewage treatment currently.
- Aaron Goldstein, Gambling911.com
