Why Bitcoin Miner Sell-Offs May Continue

Bitcoin miners are the ones who have suffered the brunt since the beginning of the bear market. As cash flows plummeted on their machines they had to find other funding options. Public miners reacted to this by buying bitcoins from their reserves to continue their operations. It looked for a while like miners might stop selling bitcoins due to the rise in the price. But this isn’t the case.

Mines Offload more BTC

In May, bitcoin miners sold more bitcoins than they mined the first time. This same trend was continued in June as miners were able to sell thousands of BTC for operational and non-operating costs. This trend didn’t end with June, though. Miners kept selling coins.

The largest bitcoin mining sale to date was 5,700 BTC sold by miners in July. This month, bitcoin miners sold more BTC that they actually made. The total production for the month was 3,470 BTC, which means that miners sold half as much bitcoin than they had mined.

These miners of bitcoin had made more sales in a month that some shut down due to rising temperatures. One of these miners was able to make more from the sale of energy credits to Texas than mining. CoreScientific had 1,970 BTC while BitFarms was at 1,600 BTC.

Bitcoin price chart from TradingView.com

 Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com

The Bear Trend for Bitcoin

Bitcoin miners make up a large portion of the biggest whales in this market. The market can be affected by the actions that miners take with regard to their portfolios. If miners don’t have to sell BTC, the market price for the digital asset will continue to rise. The reverse happens when miners dump their coins.

Due to the lower revenue generated on a daily basis and no notable rise in miner revenues it can be expected that miners will have to continue selling. The last week’s daily miner revenue was muted, with only 1.58% of their revenues growing to $21.89million.

Bitcoin miners will need to have more income from mining activities if there’s a reversal of the selling trend. These miners have been making less than they were a few months back due to the low price. Their expenses, such as electricity, are still the same as or greater in certain cases.

Featured Image from Analytics Insight. Chart from TradingView.com

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