On Sunday, the Bitcoin price prediction remains neutral as BTC failed to break out of a tight range of €16,850-€17,250. Bitcoin miners appear to have given up on the long-term profitability of holding a significant amount of pioneering crypto and are instead selling large amounts of Bitcoin.
CryptoQuant revealed that on December 1, Bitcoin miners lost 10 BTC. Compared to the 000 units that entered the market and were subsequently sold by miners on November 2.569, this number is much lower.
Joaowedson, an analyst at CryptoQuant, weighed in on the matter, citing the high cost of mining Bitcoin and the precipitous drop in the value of crypto assets as causes.
“Miners are being forced to sell their shares due to the current price of Bitcoin and the high cost of mining in various countries.”
The “makers” of the largest cryptocurrency by market cap and the asset itself are doomed in their current state. Due to the recent decline in Bitcoin's value and the high cost associated with creating a single Bitcoin, Bitcoin miners may no longer profit from their efforts.
The price of the cryptocurrency could fall and its volatility could increase if they continue to dump the results of their work on the market. The sell-offs in the markets have also affected the profits of the mining industry.
Glassnode reports that miners earn 814,28 BTC at the time of writing. Given this, it's not hard to see how one can conclude that Bitcoin offers nothing in terms of rewards or transaction fees for its miners.
US dollar fell to multi-month lows
Another key reason supporting BTC prices is the fall in the US dollar, which hit a three-month low.
Investors took advantage of surprisingly supportive jobs data, considered one of the main drivers in limiting the dollar's decline.
Meanwhile, the dollar gained ground as data showed private sector employers increased payrolls by 263.000 in November, well above the 200.000 expected.
However, the dips were short-lived as they fell to a three-month low amid a dovish stance.
Putin calls for digital currency liquidations
Russian President Vladimir Putin has advocated for a new international settlement system that is not constrained by banks and other intermediaries. The Russian leader reportedly said that it was possible to build such a system using digital currency technologies and distributed ledgers.
Russian financial powerhouse Sberbank hosted Putin at a conference focused on AI. During his speech, he pointed out that financial flows and payments between states are currently under threat in the context of close relations between Russia and the West.
President Putin clarified:
“We all know very well that under today's illegitimate restrictions, one of the lines of attack is through the settlements. And our financial institutions know this better than anyone because they are exposed to these practices."
Putin was referring to international sanctions that have severely restricted the Russian Federation's access to global financial and market institutions following the country's invasion of neighboring Ukraine.
The Prime news agency claims that he also mentioned:
Today, the international payment system is expensive, with correspondent accounts and regulation controlled by a small club of states and financial groups.
The current price of Bitcoin is €17,010, with a trading volume of €15 billion in 24 hours. The BTC/USD pair jumped more than 0,10% in the last 24 hours. Furthermore, its value has risen by around 2,75% over the past week.