Bearish Signal: Why Bitcoin Miner Sell-Offs May Continue
August 10 2022 - 7:00PM
NEWSBTC
Bitcoin miners have borne the brunt of the bear trend since it
began. They watched cash flow plummet on their machines, forcing
them to look to other ways to finance their operations. The natural
response to this was for public miners to dip into their bitcoin
reserves and begin selling off BTC to keep their operations going.
For a time, it seemed miners would stop selling due to the recovery
in price, but this is proving not to be the case. Miners Offload
More BTC Bitcoin miners had sold off more bitcoin than they had
mined for the first time in May. The same trend then continued into
June, when miners had sold thousands of BTC to cover operational
and other costs. It seems this trend did not end in the month of
June either, as the miners continued to sell off coins. Related
Reading: CEL Rallies To $2 As Bankruptcy Proceedings Continue, But
Rally May Just Be Starting Data shows that bitcoin miners had
actually sold 5,700 BTC in the month of July alone, the largest
sale so far. These bitcoin miners had once again sold more BTC than
they had actually produced. In total, it was reported that 3,470
BTC was produced for the month, meaning they sold 50% more bitcoin
than they mined. These bitcoin miners had sold more during a month
when some had to shut off operations due to rising temperatures.
However, one of those miners had been able to turn it around by
making more money from selling energy credits to the Texas
government than they would mining. The largest sellers were ousted
to be CoreScientific with 1,970 BTC and BitFarms with 1,600 BTC.
BTC recovers above $24,000 | Source: BTCUSD on TradingView.com Bear
Trend For Bitcoin Bitcoin miners are often among the largest whales
in the market. This means that whatever actions they take in
regards to their portfolios can often have an impact on the market.
It is evident when miners are not forced to sell their BTC that the
price of the digital asset continues to rise, and the reverse is
the case when they dump their coins. Related Reading: Billionaire
Mike Novogratz Says Bitcoin At $30,000 Is Unlikely The sell-offs
have all come due to the reduced revenue realized on a daily basis,
and with no significant rise in miner revenues, it is expected that
miners are going to have to keep selling. Daily miner revenues for
the last week were muted with only a 1.58% growth, seeing them
bring in $21.89 million. If there is to be any reversal in this
selling trend, bitcoin miners would have to see more cash flow from
their mining activities. However, as the price remains low, these
miners are realizing less, dollar-wise, compared to a few months
ago, while expenses such as electricity and machines remain the
same or even higher in some cases. Featured image from Analytics
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