Publicly traded bitcoin (BTC) miners sold almost all the coins they mined throughout 2022leading to a debate on whether or not the sales created “a persistent headwind” for the bitcoin price.
Analyst Tom Dunleavy of blockchain research firm Messari shared the data in a December 26 tweet, stating that approximately 40,300 of the 40,700 BTC mined by Core Scientific, Riot, Bitfarms, Cleans Park, Marathon, Hut8, HIVE, Iris Energy, Argo and Bit Digital from January 1 to November 30 were sold.
BTC miners sell roughly 100% of the coins they mine
The 10 public bitcoin miners
detailed here mined ~40.7k BTC and sold ~40.3k in 2022This is a persistent headwind for BTC and for no other reason a good thesis to be bullish the ETHBTC ratio trade pic.twitter.com/L1iI6Z07p7
— Tom Dunleavy (@dunleavy89) December 26, 2022
BTC miners sell roughly 100% of the coins they mine
The 10 public bitcoin miners detailed here. They mined ~40,700 BTC and sold ~40,300 in 2022. This is a persistent headwind for BTC and for no other reason a good thesis to be bullish on ETHBTC ratio trading pic.twitter.com/L1iI6Z07p7
Reserves held by mining companies have declined considerably during the second half of 2022, particularly through Novemberas the crypto industry was reeling from the effects of the fallout from the FTX debacle.
Dunleavy believes that the constant sale of bitcoin by miners puts downward pressure on the price of the main cryptocurrency.
However, some industry commentators, such as former BitMEX CEO Arthur Hayes, believe that the selling pressure created by increased sales of bitcoin miners is negligible.
He opined in a December 9 blog post that “even if miners sold all the bitcoin they produce each day, it would barely affect the markets”.
According to Bitcoin Visuals, on December 26 the daily trading volume for bitcoin was $12.2 billion. The output of miners that same day, according to CryptoQuant, was 919 BTC ($15.35 million), which represents only 0.13% of the total volume traded..
Miners’ reserves have picked up slightly during December, rising almost 1%. The figure contributes to a view shared in a Dec. 27 post by cryptocurrency analyst IT Tech that the miner situation appears to be stabilizing.
#Bitcoin miners-update. Is there anything to worry about?
1.
Miner Outflow
miner flow
Miner Reserve
White line on the bottom – miner to Exchange flow2. Mining difficulty
3. Miner selling power
4. Hashrate 7D MAFull analysishttps://t.co/E3o0cgaNxu
— IT Tech (@IT_Tech_PL) December 27, 2022
Update on the situation of bitcoin miners. Is there something to worry about?
1. Departure of miners
inflow of miners
miners reserve
The white line at the bottom represents the flow from miner to Exchange2. Difficulty mining
3. Selling power of the miner
4. Hashrate of 7D MA
Miners have faced significant headwinds all year; there have been high electricity prices, falling cryptocurrency market prices, and increased mining difficulty.
Given the increase in the cost of production for miners while the price of bitcoin has been declining, Miners like Core Scientific have been forced to sell some of their reserves at a loss to finance their ongoing operations and expansion efforts..
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here 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.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.