Mining stocks decline as Bitcoin miners sell at the fastest rate in seven years.

The pressure on Bitcoin miners has never been higher as of Nov. 22, when BTC prices hit a fresh bear cycle low.

Charles Edwards, the founder of Capriole Fund, saw that Bitcoin miners were selling aggressively on November 21. The sell-off has escalated by 400% so far this month, as seen by the chart.

He continued, “It is also the most aggressive selling observed in almost seven years.”

“Many Bitcoin miners will go out of business if price doesn’t rise soon.”

Currently, bitcoin miners are dealing with three problems at once. It is more difficult to mine the next block when hash rates are close to their peak levels. Although this is negative for miners, it is beneficial for network security. Blockchain.com reports that the network hash rate is presently 261 EH/s (exahashes per second). Furthermore, it peaked on November 2 at 273 EH/s.

It is more difficult to compete for the next block because mining difficulty is also at peak levels.

Energy costs are still extremely high most of the time, which makes things difficult for Bitcoin miners. Profit margins are severely lowered when power costs are excessive. As a result, many mining operations will shut down their equipment or cease operations entirely.

The Australian company Iris Energy is the most recent to do so. Iris has been forced to shut down its hardware after defaulting on a $108 million debt, according to BeInCrypto.

The third element that harms miners is the price of bitcoin. According to CoinGecko, the asset fell to $15,650 on November 22, its lowest price since November 2020.

The downward spiral is exacerbated by all of these reasons, which continue to put pressure on Bitcoin miners and leave them with no choice except to sell.

Due to declining share prices, publicly traded mining businesses are likewise in a terrible situation right now. According to Market Watch, Canaan Inc. stock plunged to a two-year low of $2.52 in after-hours trading.

Additionally, Riot Blockchain stock is at a two-year low. After the bell on Monday, they decreased to $4.05, over 94% below their peak.

Not much better is happening to Marathon Digital. After hours, the stock traded at $6.26, its lowest price since December 2020.

As the crypto cold intensifies, bitcoin mining stock trade volumes are likewise at their lowest-ever levels.