The continuous downward trend in Bitcoin [BTC] has had a substantial impact on miners other than traders. Bitcoin miners have become major sellers of the flagship currency, where the miner’s stocks are reaching record lows.
Bitcoin Miners Turn Into Major Sellers
Bitcoin miners have reportedly started transferring their BTC reserves during the latest sell-off, but at a slower rate than before 2022.
As per Glassnode statistics, the following graph depicts the 30-day shift in BTC supply stored in miner addresses.
The red drop, in this case, indicated that Bitcoin miners were turning into major sellers following months of being gross HODLers. Moreover, this shifting perspective was visible in both May and June this year.
Public mining firms sold 4,411 Bitcoins in May 2022. This value is 4 times greater than the January to April 2022 average. According to the economic filings of publicly traded mining businesses, they needed to double BTC sales to earn a living.
The drop in sales for Bitcoin miners might be a major factor for this situation. Miners’ holdings have lately dropped at a high pace of 5k to 8k BTC per month (equivalent to $150 million to $240 million in BTC at $30k).
Nowadays, overall miner incomes are still not near to where they were previously. As seen in the chart below –
Furthermore, as a result of the inflationary effect, electricity costs are increasing. Consequently, as bitcoin prices declined, so did miner earnings. Hence, this supply initiative is designed to counterbalance additional losses.
Furthermore, the Bitcoin mining hashrate fell throughout the June month as miner profits remained weak.
The term “mining hashrate” refers to the overall level of processor speed linked to the Bitcoin network. Miners have begun to unplug their equipment, possibly due to little or no revenue.
Dwindling Miner’s Holdings
Nowadays, fluctuations in miners’ holdings may or may not result in BTC price movements. Despite this, the crypto industry failed to stay up in the face of turmoil, FUD, and governmental damage.
Nevertheless, at the time of reporting, the flagship currency has risen by more than 4% after trading more than $20k.
Widening negative scenarios, such as dramatic sell-offs, might, however, inject more declines.
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Source: https://coinpedia.org/bitcoin/heres-the-escape-plan-for-bitcoin-miners-to-survive-this-bear-market/