Bitcoin miners get 27% less BTC after 3 months of heavy sales

According to a new prediction from crypto analytics firm Arcane Research, miners will continue to sell more BTC than they earn. Miners ...


According to a new prediction from crypto analytics firm Arcane Research, miners will continue to sell more BTC than they earn.

Miners have sold nearly 30% of BTC’s record stash since May

The trip to $25,000 this month eased pressure on a struggling Bitcoin mining sector throughout 2022.

At one point, fears abounded that the cost of producing miners was much higher than the spot price of Bitcoin and that strong sales would result to keep miners in business. Worse still, many of them may have to retire because their businesses are no longer financially viable.

Data from the period since May seemed to confirm that a major upheaval was underway. As Arcane notes, only one public miner – Core Scientific – sold around 12,000 BTC during the May-July period.

While the trend showed signs of retreat last month, it will take even higher BTC prices to allow even the biggest mining operators to stick around again.

“Even though public miners sold less than half the amount in both July and June, we still see them depleting their holdings if we look at the percentage of bitcoin production sold,” the Arcane analyst explained. Jaran Mellerud.

“Public miners sold 158% of their bitcoin production in July, making it the third month in a row that they sold more than 100% of production.”

Public Bitcoin miner sales chart (screenshot). Source: Arcane Research

For context, in April 2022, coins held by miners were at an all-time high, thanks to years of saving at least 60% of the BTC received via block grants every month.

After subsequent sales, however, their balance tends to fall by 30% and will only increase until the balance of monthly expenses is restored.

“I expect the selling pressure to continue between 100% and 150% of output unless something significant happens to the bitcoin price. This equates to between 4,000 and 6,000 BTC per months,” added Mellerud.

bitcoin (BTC) may have risen 36% from its June lows, but for miners the pain will continue.

The light at the end of the tunnel

Like Cointelegraph reporteda much-needed return to better days for miners might be closer than it seems.

Related: BTC Mining Stocks Double in a Month as Production Rises

Revenue jumped nearly 70% in August, as proof-of-work mining in general gains prominence beyond the crypto sphere.

Environmental concerns no longer hold back a lot of money, as evidenced by the world’s largest asset manager, BlackRock, praise the sector this month.

Constantly increasing Bitcoin fundamentals meanwhile provide real-time evidence that things are stabilizing for the backbone of the Bitcoin network. Data from BTC.com estimates that the difficulty should increase by around 0.7% this week.

Overview of the fundamentals of the Bitcoin network (screenshot). Source: BTC.com

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