Bitcoin May Face Selling Pressure Due to Potential Bankruptcies in Mining Sector
According to cryptocurrency analytics firm Messari, Bitcoin, the world’s largest cryptocurrency by market capitalization, is likely to face additional selling pressure if mining companies start filing for bankruptcy. Public Bitcoin miners have been forced to sell their Bitcoin holdings in order to be able to finance their operations.
Mining companies are having a hard time staying due to a double-whammy of increasing Bitcoin mining difficulty and plunging prices. Moreover, miners are struggling to pay their electricity bills due to high costs. Earlier this week, Core Scientific, the biggest Bitcoin mining company in the world, shocked the industry by stating that it was exploring bankruptcy due to its dire financial conditions. The shares of the publicly traded company crashed by a whopping 77% on the news.
Source
t.me/Mining_Crypto_Miner
