As the crypto market took a turn for the worse in June, Bitcoin miners are expected to sell even more Bitcoin in the near term.
The crypto market entered a phase of sell-off in the first week of June, which saw a market-wide route with the majority of cryptocurrencies dropping to 4-year lows.
Deteriorating market conditions have also adversely affected Bitcoin (BTC) mining profitability, forcing miners to liquidate their BTC holdings.
Specifically, according to a report from blockchain analytics firm Arcane Research, in the first four months of 2022, miners sold off 30% of their Bitcoin production. The sharp drop in mining profits forced these companies to increase their selling rate to more than 100% in May – a time when Bitcoin mining revenue recorded its worst decline in 2022.
Even so, market conditions have now worsened in June, meaning they are likely to sell more in the future. It should be noted that miners currently account for 20% of the global Bitcoin hashrate, which really jeopardizes the common ground if they have any negative action coming.
Miners collectively hold 800,000 BTC, making them one of the largest whales in the market. Of these, miners are publicly holding 46,000 BTC, and their sell-off could push the price even lower.
The situation only worsened in June with the Bitcoin price falling below its 2017 high of $20,000 and recording a new 4-year low of $17,783. Miner’s to exchange flow, a metric showing that the volume of BTC sent by miners to exchanges hit a new high in June, reaching levels not seen since January 2021.
Bitcoin’s hash price is a mining metric that represents a miner’s revenue on a per terahash basis. This is the average value – in fiat currency – of the daily reward miners receive per terahash calculation ($/TH/s per day), which has fallen to a new 1.5-year low.
The Bitcoin Hash Ribbon, an indicator that attempts to identify periods in which BTC miners are losing money and possibly selling off, shows that many miners are withdrawing their machines due to unprofitability.
At a time of BTC price drop and miner crisis, many believe it is also a strong bottom signal, especially when miners start to give up.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
