Bitcoin Sees First Difficulty In 2 Months As Miners Sell 8K BTC
Bitcoin (BTC) miners remain under stress at current price levels as data shows that large outflows from miners’ wallets are returning.
According to in-chain research firm Glassnode, monthly mining sales were up to around 8,000 BTC in September.
Bitcoin miners see big sell-off
In contrast to the lows of June, when BTC/USD hit its current multi-year floor of $17,600, miners are currently selling significant amounts of BTC.
According to Glassnode, which tracks the 30-day change in miner balances, miners were down a maximum of 8,650 BTC at the beginning of the month.
While this was later reduced, taking into account changes in the BTC price, miners still sell more than they earn on a rolling monthly basis.
As of September 29, the latest date for which complete data is available, miners were down 3,455 BTC over 30 days – still narrowly a month-long low in exchange transactions, Glassnode noted.
Mining even caught the attention of the mainstream media this week, with Reuters describing the sector as “stuck in a bear pit”.
“Bitcoin miners have continued to see margins compress – the price of bitcoin has fallen, mining difficulty has risen and energy prices have risen,” the publication quoted Joe Burnett, principal analyst at mining company Blockware, as saying.
With BTC/USD forecast to potentially fall even more in line with global macroeconomic strife, miners may face more obstacles to come.
This will further emphasize an important component of the Bitcoin ecosystem that just in August ended a “capitulation phase” for get some profitability back.
The degree of difficulty is a record high
Signs of change are evident in today’s fundamental figures for the network.
At the last automated adjustment on September 28, Bitcoin mining difficulty fell by 2.14% – the first decline since July.
Related: Legacy Bitcoin Leaves Wallet After 10 Years of Dormancy
The calculation, which provides more insights into network operation and mining boom, was previously at all-time highs.
In two weeks, however, the rally is forecast to resume, with the final outcome dependent on price action in the interim.
Similarly, the hash rate of the Bitcoin network is currently around slightly lower levels than recent peaks, but still close to its own records, according to combined data from BTC.com and MiningPoolStats.
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