Bitcoin continues to decline [BTC] Miners other than merchants have had a great impact. Bitcoin miners have become major sellers of the major currency, with miner stocks reaching record highs.
Bitcoin Miners Turn into Major Sellers
Bitcoin miners have reportedly started moving their BTC reserves during the latest sell-off, but at a slower pace than before 2022.
According to data from Glassnode, the following graph shows a 30-day change in the BTC supply stored in miner addresses.
In this case, the red drop indicated that bitcoin miners were becoming major sellers after months of being major HODLers. Moreover, this changing 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 higher than the January to April 2022 average. According to economic filings from publicly traded mining businesses, they need to double their BTC sales to make a living.
The drop in sales for bitcoin miners could be a major factor in this situation. Miners’ holdings have recently fallen from a high of 5k to 8k BTC per month (equivalent to $150 million to $240 million on $30k in BTC).
Nowadays, the overall income of miners is still not as high as it was before. As can be seen in the chart below-
In addition, as a result of the effect of inflation, the cost of electricity is increasing. As a result, as the bitcoin price declined, so did the miner’s earnings. Therefore, this supply initiative is designed to counterbalance the additional losses.
Furthermore, the bitcoin mining hashrate fell throughout the month of June as miner profits remained weak.
The term “mining hashrate” refers to the overall level of processor speed associated with the bitcoin network. Possibly with little or no revenue, miners have started unplugging their equipment.
Decreasing Khan’s Holdings
Nowadays, the BTC price may or may not fluctuate as a result of fluctuations in miners’ holdings. Despite this, the crypto industry failed to withstand the turmoil, FUD and government damages.
Nevertheless, at the time of reporting, the major currency is up over 4% after trading over $20k.
However, aggravation of negative scenarios such as dramatic selloff could lead to further downside.