Crypto miners sell record amount of Bitcoin

The crypto winter that doesn’t know how to stop is also starting to hit Bitcoin miners. Where they were until recently in the hodl mode, miners now send large numbers of Bitcoin to the exchanges. The Glassnode Bitcoin Miners to Exchange Flow chart shows Bitcoin miner outflows reaching a seven-month high with 9,476 Bitcoin.

The bears are the boss

The fact that relatively many miners now send their Bitcoin to the exchanges indicates that they are afraid. The longer the price stays at this level, the more difficult it is for miners to keep their heads above water. Selling their Bitcoin reserves is a last resort to remain liquid and survive the bear market with one last breath. In that respect, the bears are still the boss in the market at the moment.

It is not surprising that Bitcoin miners are currently having a hard time. The profitability of miners is down about 75 percent from its all-time high. Also the Bitcoin Puel Multiple Chart, an indicator that puts the profitability of miners in perspective, currently gives a score of 0.39. This means that this indicator is also in the capitulation zone and that is exactly what is happening with the miners at the moment.

With the score of 0.39, we are at the lowest point for this indicator since the November 2018 crash and miners earn only 39 percent of the 1-year average income. The longer this takes, the greater the chance that the miners will have to say goodbye to their hard-earned Bitcoin.

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Realized losses reach peak

The increasing realized losses are also putting more and more pressure on the market for Bitcoin. Last week, investors realized the biggest loss in Bitcoin history. The loss realized on-chain came in at more than $4.23 billion, surpassing the big sell-offs of 2021 and 2020.

Based on on-chain data, long-term hodlers are currently sitting on the biggest unrealized loss in Bitcoin history. Long-term hodlers are now also partially sitting with a higher cost base than short-term hodlers. In previous bear markets, “washing out” these sellers has often been the last step in finding a bottom.

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