Bitcoin miners sold their entire May-fall: report

by · July 5, 2022

The cryptocurrency market entered a sales phase in the first week of June, and saw a market-wide route with the majority of cryptocurrencies falling to a four-year low.

The deteriorating market conditions have also negatively affected the profitability of Bitcoin (BTC) mining, forcing miners to liquidate their BTC 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 extracted production, which increased 3X times in May and is expected to increase further in June.

While public BTC miners make up only up to 20% of the total network hash rate, their behavior often reflects the feelings of private miners as well.

Miners have a total of 800,000 BTC, making them one of the largest whales on the market. Out of these, public miners have 46,000 BTC and their sales rudeness can push the price further down.

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The situation only worsened in June with the Bitcoin price falling below the 2017 high of $ 20,000 and registering a new 4-year low of $ 17,783. reached a new high in June, reaching a level not seen since January 2021.

As Cointelegraph previously reported, the BTC mining-to-exchange flow ratio reached a new 7-month high when the BTC price fell below $ 21,000. The fall in the price of BTC has also made many miners unprofitable, forcing miners to leave the crypto market.

Bitcoin hash price is a mining value that represents the miner’s income on a terahash basis. It is the average value – in fiat currency – of the daily rewards a miner receives per each terahash calculation (USD / TH / s per day), which has fallen to a new low of 1.5 years.

Bitcoin Hash Ribbon, an indicator that tries to identify periods when BTC miners are in need and can capitulate, has crossed, indicating that many miners are disconnecting their machines due to lack of profitability.

In a time of BTC price declines and the mining crisis, many believe that it is also a strong price bottom signal, especially when miners begin to give up.

BTC fell below $ 21,000 again and traded just over $ 20,000 at the time of the press, seeing a 6% decline in the last 24 hours.