Despite GDP growth estimates signaling a 2.6% increase in output in Q3, there are several other data points that signal a weakening economic environment, as we'll examine below.
The Bank of Canada and the European Central Bank both issued market interest rate increases this week to the tune of 50bps and 75bps, respectively.
Falling US Treasury yields and DXY could potentially relieve the sell pressure hitting the equity indexes on Wednesday/Thursday following big tech earnings.
Bitcoin has seen an overall constructive week of price action after breaking above $20,500 for the first time in over a month.
Bitcoin is still facing Short Term Holder Realized Price and 200-day moving average as key resistance levels.
Reserve Risk, MVRV Z-Score, and Mayer Multiple are showing extreme value, even after the positive price movement of this week.
Miner balances are plummeting as miner margins continue to get crunched by an increasing difficulty
One of the largest publicly traded mining companies, Core Scientific, has defaulted on upcoming debt obligations.
Mining
According to the filing, Core Scientific plans to restructure debt obligations as well as issue additional equity lines of credit. If that does not provide enough liquidity, Core will likely begin to sell ASICs or entire mining sites In order to stay afloat. Purchasing such distressed assets iis an incredible opportunity for competing miners to capitalize on.
Core Scientific has a plethora of mining assets that could be liquidated as they currently possess an estimated ~4.9% of the network’s total hash rate.