Bitcoin Miners Sold Holdings During Recent Crash

A lot Bitcoin miners have a part of sold their holdings during the recent price drops, according to data from Glassnode and Compass Mining, among others. However, it seems to be mainly about newly mined bitcoins (BTC), not about long-term positions.

on chain

glass node writes on Twitter that miners have sold 5,000 to 8,000 BTC per month. At an average price of USD 30,000, that is a total of USD 150 million to USD 240 million per month. However, their sales have fallen to 3,300 BTC per month in recent weeks.

Miners are generally quite good at timing the market, which can be concluded from on-chain data from Glassnode, for example. However, this seems to be less true for this cycle. Looking at the activity from last year to now, it seems that miners were just as surprised by the crashes as regular investors. Miners even sold on the bottoms, and at the beginning of this year, miners even continued to stockpile on a large scale.

Compass Mining, a service provider for miners, wrote according to CoinDesk also a lot of sales. The service provider bases this on data from CoinMetrics. Miners would hit a wall in terms of profitability.

huhgreat energy prices

Miners are not just investors. They must be financially able to keep the network afloat. For some miners it will therefore be a pure necessity to sell, even if the price is not favorable. Matters such as energy costs are very important here. As long as the trade war with Russia continues, it is unlikely that energy prices will fall.

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Whether miners of Bitcoin (BTC) and cryptocurrencies are right and that the price will therefore continue to fall or that they are wrong again and that prices will rise again remains to be seen. There are many signs that the bottom is almost reached. At the same time, other markets are still in a dangerous bubble and it is time for central banks to take stricter measures.

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