The cryptocurrency market entered a bearish phase in the first week of June, seeing a market-wide trend with most cryptocurrencies falling to a 4-year low.
Deteriorating market conditions have also negatively affected the profitability of Bitcoin (BTC) mining, forcing miners to liquidate their holdings.
New data from Arcane research shows that public Bitcoin mining companies sold 100% of their BTC production in May, compared to the usual 20-40% previously.
In the first four months of 2022, public BTC mining companies sold 30% of their mined output, which increased 3-fold in May and is expected to increase further in June.
Although public BTC miners only represent 20% of the total network hashrate, their behavior often reflects the sentiment of private miners as well.
The miners collectively own 800,000 BTC, making them one of the biggest whales in the market. Of them, public miners hold 46,000 BTC and their selloff could push the price even lower.
The condition has only worsened in June, with Bitcoin price falling below the 2017 high of $20,000 and posting a new 4-year low of $17,783. Deposits from miners to exchanges, a data metric that shows the volume of BTC sent by miners to cryptocurrency exchanges, has reached a new high in June, reaching a level not seen since January 2021.
As Cointelegraph previously reported, the ratio of BTC miners to exchange deposits has hit a new 7-month high as BTC price plunged below $21,000. The falling price of BTC has also made many miners unprofitable, forcing miners out of the cryptocurrency market.
Bitcoin hash price is a mining metric that represents miners’ revenue per terahash. It is the average value – in fiat currency – of the daily rewards a miner earns for each terahash calculation (USD/TH/s per day), which has fallen to a new 1.5-year low.
Bitcoin Hash Ribbon, is an indicator that tries to identify the periods in which the BTC miners are in trouble and may be capitulating. This metric has crossed, indicating that many miners are turning off their equipment due to lack of profitability.
At a time of falling BTC price and miner crisis, many believe this is also a strong price bottom signal, especially as miners start to give up.
âšï¸ Hash Ribbon Indicator: $BTC miners are capitulatingâš ï¸
This distress signal occurred 9 days ago, possibly indicating that the price bottom is near!
“When miners give up, it is possibly the most powerful Bitcoin buy signal ever” –@caprioleio #BTC #cryptocrash #cryptocurrency pic.twitter.com/SWJjzUEICB
– The Baranito (@ElBaranito) June 18, 2022
BTC dipped below $21,000 again and at press time was trading just above $20,000, seeing a 6% decline in the last 24 hours.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.