The Ethereum Merge has seemingly turned out to be a sell-the-news event, with the price of most cryptocurrencies surging ahead of the network’s move from a Proof-of-Work into a Proof-of-Stake consensus algorithm, and plunging shortly after.
Market data shows that over the past month, the price of Bitcoin dropped by around 22%, while the S&P 500 dropped roughly 10%, and gold dropped by 7%. While these last few weeks have been negative for every market, cryptoassets appear to be the most affected.
Bitcoin’s low price has been taking its toll on mining operations. Last month, BTC miners continued their selling activity, recording a net flow of -21,300 coins worth nearly $400 million, according to CryptoCompare data.
Bitcoin mining profitability relies heavily on the mining cost being below the price of the flagship cryptocurrency. Bitcoin’s downtrend, combined with a higher hashrate, which rose 5.28% to 212million TH/s, has forced miners to sell to sustain themselves.