Bitcoin [BTC]Its ongoing bearish streak has affected not only the holders, but the miners as well. Bitcoin miners turned into bitcoin net sellers, miners’ inventories plummet to new lows. Miners didn’t necessarily turn into a “massive” recession, although some looked to offload excess inventory. Or, is it really so?
A result with nothing concrete…
Bitcoin miners have been distributing their holdings of BTC during the recent sell-off, albeit at a slower pace than at the beginning of this year.
The chart attached here shows a 30-day change in BTC supply to miner addresses, according to data compiled by Glassnode.
Here, after being a net hodler for months, the red drop signals bitcoin miners to become net sellers. Indeed, both May and June witnessed this changing narrative.
In May 2022, public mining companies sold 4,411 bitcoins. This figure is four times higher than the January to April 2022 average. Financial statements from public mining companies showed that they had to quadruple BTC sales to meet their needs.
The drop in revenue for BTC miners could be a major reason behind this scenario. The balance of miners recently increased from 5k to 8k. has declined at the peak rate of B T c per month (or about $150 million to $240 million worth of BTC $30k .),
Currently, total miner revenue is barely the same as it was before, This is clear in the graph below –
Besides, the electricity prices are increasing in view of the inflationary mark. In addition, miners’ profits fell in line with cryptocurrency rates. Ego, This distribution effort is to make up for further losses.
Furthermore, the month of June saw a decline in bitcoin mining hashrate as miner revenues remained low. The “mining hashrate” is an indicator that measures the total amount of computing power attached to the bitcoin blockchain. With low or no profitability levels, miners have started disconnecting their machines.
fight your own demons
Currently, the price of BTC may or may not fluctuate due to changes in miners’ positions. Nevertheless, crypto has struggled to keep up amidst a sea of chaos, FUD and regulatory scars.
However, at press time, King Coin registered a gain of 8% on CoinMarketcap after trading around the $20k-mark.
However, deepening bearish narratives such as excessive selling could lead to further corrections.