According to a large financial institution, the pressure on Bitcoin (BTC) may persist since some miners are likely to fail, overshadowing the macroeconomic conditions' improvement.

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Bitcoin will drop to $10,000–$12,000 in Q1 due to a wave of miner insolvency, marking the lowest point of the crypto winter.

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Matthew Sigel, head of research for digital assets at VanEck, made this statement about the prognosis for 2023. Those in charge of producing coins, or bitcoin miners,

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had to choose between rising operating costs and falling bitcoin prices. The profitability of miners is directly impacted by the price of bitcoin.

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given that they earn the money in exchange for solving difficult math puzzles that verify transactions on the blockchain.

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The rewards won are frequently sold to cover costs of operation. As a result, miner surrender occurs when the price falls, as it did this year by 61%.

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a scenario when unprofitable miners withdraw from the market, selling their reserves and further lowering the price. Giving in can, in the worst instance, result in a death spiral.

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Miners have started to run out of coins as a result of the difficult market conditions. The money in miner wallets has fallen since July

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according to data held by blockchain analytics startup Glassnode, by more than 25,000 BTC ($444 million).

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A 14-month low of 1.818 million BTC was attained. The trend might persist given that the majority of mining companies are experiencing financial losses.

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