sales, Bitcoin miners have 27% less BTC
Since May, miners have sold almost 30% of the record BTC stock
This month’s $25,000 increase in Bitcoin mining has helped to ease the pressure on an industry that has struggled all through 2022.
There were fears that miners’ production costs would be much higher than the Bitcoin spot value. This could have led to miners having to sell a lot in order to remain in business. Many may need to retire entirely if their activities are no longer financially viable.
Data from the May period seemed to support this claim. Arcane points out that Core Scientific, a public miner, sold approximately 12,000 BTC during the May-July period.
Although the trend was showing signs of reversal last month it will still take higher BTC prices for even the most powerful mining operators to hodl again.
Jaran Mellerud, an Arcane analyst, explained that even though public miners sold less in July than in June they still drain their holdings by looking at the percentage of bitcoin production sold.
“The public miners sold 158% off their July bitcoin production, marking the third consecutive month of selling more than 100%.”
To give you some context, April 2022 saw miners’ hodled coin sales at their highest level ever. This was due to years of saving at minimum 60% of BTC each month via block subsidies.
However, after subsequent sales, their balance has trended toward 30% lower and will continue to climb until the monthly expense equilibrium has been restored.
“Unless something major happens to bitcoin’s price, I expect that the selling pressure will continue to be between 100% and 15%0% of production.” Mellerud said that this is equal to between 4,000-6,000 BTC per monthly.
Although Bitcoin may have risen 36% since its June lows but miners will still feel the pain.
There is light at the end
Cointelegraph reported that miners might be getting a much-needed return to good days .
In August, revenue jumped by 70%. proof of work (PoW), mining is also growing in popularity beyond the crypto sphere.
BlackRock, the world’s biggest asset manager, has praised the sector this month.
The steadily increasing Bitcoin fundamentals provide real-time evidence that the situation is stabilizing the backbone Bitcoin network. According to data from BTC.com , this week’s difficulty will increase by approximately 0.7%.
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.