As bitcoin trades near $20,000, miners are starting to sell their BTC, and new whales are buying it off their hands.
IntoTheBlock on-chain data vendor has reported that miners have been selling large amounts of BTC lately, with big new bitcoin addresses emerging as whales are buying BTC on the plunge.
“The miners are struggling to break even”
IntoTheBlock reported that since June 14, bitcoin miners have gotten rid of a staggering amount of BTC: 18,251 coins worth $372,035,684 at the current exchange rate.
As the world’s leading cryptocurrency has managed to climb back into the $20,000 region, they have started selling their coins quickly to cover their debts and other expenses that need immediate financing.
Miners are rushing to sell to cover expenses/debt.
Along with maintaining the hash rate at historically high levels and $BTC Hovering around $20k, miners are struggling to break even.
Mine reserves have declined by 18,251 $BTC From June 14th. https://t.co/bol3akiImy pic.twitter.com/YcIOolpFNS
— IntoTheBlock (@intotheblock) 23 June 2022
Earlier, U.Today covered that bitcoin mining difficulty dropped by 2.35% over the past two weeks.
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This is the second major downside adjustment since the beginning of the year and the fifth adjustment of mining difficulty for bitcoin overall this year. When the crypto market reverses downward, the mining difficulty goes down. Miners are forced to take their gear off because they can neither break down nor make a profit.
Whale buying bitcoin from miners
The sentiment analytics company has reported that several big bitcoin wallets have appeared this year. Over the past two weeks, a number of addresses have appeared on the network holding 10–10,000 BTC while bitcoin was going down.
For the big guys who store more than 10,000 bitcoins, their amount has increased since February began.
While markets have been suppressed, large volumes have increased #bitcoin Pop up addresses on the network. 10 to 10k . addresses of $BTC There has been an increase on the decline 2 weeks ago, and 10k+ addresses have increased since February. https://t.co/A0KSYchZNW pic.twitter.com/h44uw5QjvK
— sentiment (@santimentfeed) 22 June 2022
Bitcoin falls again to $19,900
Earlier today, the largest cryptocurrency by market cap fell to the $19,950 level. However, later, it managed to climb back and stabilize near the $20,600 area.
The above drop in bitcoin mining difficulty and the overall state of the market were likely due to the price drop.
