Bitcoin Miners selling their BTC Reserves: BTC to plunge more

According to cryptocurrency analytics company Arcane Research, if public Bitcoin miners sell a lot of their supply, “it might contribute to pushing the Bitcoin price further down.”

According to recent research by Arcane Research, publicly listed Bitcoin miners like Marathon Digital and Riot Blockchain sold more bitcoin last month than they created, a significant improvement over the first four months of the year when they only sold roughly 30 percent of what they produced.

Bear market: yet to come?

Yesterday, Toronto-based Bitfarms sold 3,000 Bitcoin—almost half its supply—to decrease debt.

According to a press release from Jeff Lucas, the chief financial officer of Bitfarms, the company will no longer HODL all of its daily Bitcoin output going ahead.

Miners have amassed a sizable amount of Bitcoin in terms of publicly traded corporations. In fact, according to Bitcoin Treasuries, miners own seven of the ten biggest Bitcoin treasuries.

If Bitcoin mining firms, who are often the ultimate HODLers, have started selling their holdings, then there must be a bear market.

Jaran Mellerud, a Bitcoin mining analyst with Arcane Research, stated in a study that “if they are compelled to liquidate a significant portion of their assets, it might contribute to pushing the Bitcoin price further down.”

This strategic shift, he added, “enables us to focus on our top goals of maintaining our world-class mining operations and continuing to build our business in expectation of improving mining economics,” even if “we remain positive on long-term BTC price gain.”

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According to Zack Voell, an analyst at the Bitcoin mining software provider Braiins, Bitcoin miners appear to be hanging onto their Bitcoin overall, and their supply has not changed since January.

The total amount of computer power being utilized to mine bitcoin is indicated by the network’s hash rate. To “guess” a cryptographic text, a computer creates a new integer for every single hash.

The right to validate and add a block of transactions to the blockchain belongs to whichever miner, or pool of miners makes the correct estimate.

Miners profit from the resulting rewards and transaction fees. But as markets continue to lag, mining has become less and less viable.

Since the beginning of the month, miner revenue has fought to maintain a block price of $20 million or more.

According to reports, during the panic over the troubled hedge fund Three Arrows Capital and cryptocurrency lender Celsius, per block income started the year at nearly $50 million, sank to just below $40 million at the beginning of May, and as low as $16 million last week.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing