Crypto-services provider Matrixport reported Friday that Bitcoin (BTC), which is currently trading at $28,000, may be under pressure from sellers.

The report stated that Matrixport suspects bitcoin miners will be forced to liquidate new inventories because the profit margins are decreasing in recent weeks.

The report said that mining has become extremely competitive and unprofitable due to the constant increase in bitcoin miner difficulties. Mining difficulty, the measure of miners’ ability to discover a block of bitcoins, reached an all-time-high earlier this week.

Markus Thielen is the head of research. He wrote: “At current input costs and expected output revenues, most machines produced before the year 2022 seem to be unprofitable.”

The note stated that this means miners will be forced to sell their stock at current levels instead of waiting for prices to increase, as Matrixport predicts.

The note said that there was a significant upward convexity in the mining industry, as profits could be fourfolded if bitcoins prices increased by 10% or more.

Read more about the near-term upside of the crypto market: Bank of America

Sheldon Reback is the editor.