According to the crypto analysis company called Arcane Research miners now have about 27% less Bitcoin in their wallet than before. They also predict that they will continue to sell more BTC than they earn in the short term.
More than production sold for the third month in a row
That miners sell so much Bitcoin is due to the relatively low price for the digital assets. There was a lot of fear that miners’ production costs were much higher than their spot price. Heavy sales would keep the miners in business.
Data from the period since May seemed to confirm that a major upheaval was underway. As Arcane points out, a public miner called Core Scientific alone sold about 12,000 BTC in the period from May to July. While the worst may now be over, even higher BTC prices would be needed to allow the largest miners to hold more of their mined BTC. About this, analyst Jaran Mellerud of Arcane Research says the following about this:
Although the public miners sold less than half the amount in July, we still see them emptying their holdings when looking at the percentage of bitcoin production sold.
The public miners sold approximately 158% of their bitcoin production in July, selling more than 100% of their production for the third month in a row. Compared to April 2022, miners’ coins were at an all-time high, thanks to years of savings of at least 60% of BTC received each month through block subsidies.
Current sales pressure may remain for a while
It therefore seems necessary for the miners that the price per Bitcoin rises. If not, the current selling pressure of 100% to 150% of production levels will continue for longer. Still, Bitcoin seems to be starting its recovery; it is not yet known exactly how this price will develop and whether miners will see more profits in the short term.
The fact that BTC is starting its recovery also has some effect on the profits of the miners: they are going up again. Also, the environmental problems no longer seem to hold back the big money. BlackRock, the world’s largest asset manager, recently praised the sector. While these fundamentals appear positive in the long term, it is not clear whether miners will be making more profits again in the short term.
