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The surrender of an unknown miner “caused the fall,” says CryptoQuant CEO

June 3, 2020

According to Ki Young Ju, CEO of CryptoQuant, The surrender or resignation of an unknown mining group was responsible for the recent market crash.

The miner, who has produced 51 blocks in the past four days, can capitulate. informed Ki Young Ju. The 51 blocks produced by the mining group were rewarded with 637.5 BTC, 9% of the total during this period.

The surrender of an unknown miner “caused the fall,” says CryptoQuant CEOThe surrender of an unknown miner “caused the fall,” says CryptoQuant CEO

Unknown miner: number and percentage of blocks mined. Source: blockchain.com

This miner only sells when the price is high.

Meanwhile, since May 20th (but without today) the largest unknown mining assembly, has the fifth largest hashrate, has withdrawn 12,571 BTC from its treasury. As Ki Young Ju Cointelegraph explained:

they [los grupos mineros] They only move bitcoins if they choose to sell them. Each miner has a different wallet management system. The major mining groups send BTC to the stock exchanges on a regular basis, and the largest unknown mining group only moves their bitcoins when the price of BTC peaks. “

Ends the unknown Bitcoin mining pool. Source: CryptoQuant

Today, the same mining group has moved several thousand BTC. However, this miner may not have surrendered, but only used the opportunity to liquidate his inventory at a price that he found attractive. As with all Bitcoin price movements, it is not entirely clear what is behind it and whether this miner caused the decline. Miners are reportedly currently selling more Bitcoin (BTC) than they generate.

Inefficient miners suffer

Obviously, the block reward has been halved since halving. However, Real output has experienced a further retreat due to the falling hash rate and an increase in the block time interval.

Bitcoin problem. Source: Glassnode

Many less efficient miners are now at a crossroads: either stop production permanently or hold on until the price rises to compensate for lost production, or until they get new, more efficient mining equipment.

Experts interviewed by Cointelegraph, however, believe that switching inefficient miners will lead to bullish results for Bitcoin in the long run.