Why Bitcoin Miner Sales Can Continue

Bitcoin miners have borne the brunt of the bear trend since it began. They saw cash flow plummet at their machines, forcing them to look for other ways to finance their operations. The natural reaction to this was for public miners to dip into their bitcoin reserves and start selling BTC to keep operations going. For a time it seemed that miners would stop selling due to the rise in price, but this turns out not to be the case.

Miners unload more BTC

Bitcoin miners had sold off more bitcoin than they had mined for the first time in May. The same trend continued into June, when miners had sold thousands of BTC to cover operational and other costs. It seems that this trend did not end in the month of June either, as the miners continued to sell coins.

Data shows that bitcoin miners had actually sold 5,700 BTC in the month of July alone, the biggest sale so far. These bitcoin miners had once again sold more BTC than they had actually produced. In total, it was reported that 3,470 BTC were produced for the month, which means they sold 50% more bitcoin than they mined.

These bitcoin miners had sold more in a month when some had to shut down operations due to rising temperatures. However, one of these miners had been able to turn it around by making more money selling energy credits to the state of Texas than they would mining. The biggest sellers were thrown out to be CoreScientific with 1,970 BTC and BitFarms with 1,600 BTC.

BTC recovers above $24,000 | Source: BTCUSD on TradingView.com

Bear Trend For Bitcoin

Bitcoin miners are often among the biggest whales in the market. This means that the actions they take in relation to their portfolios can often have an impact on the market. It is clear when miners are not forced to sell their BTC that the price of the digital asset continues to rise and the opposite is true when they dump their coins.

The sales have all come due to the reduced revenue realized on a daily basis, and without any significant increase in miner revenue, it is expected that miners will have to continue selling. Daily miner earnings for the past week were muted with only 1.58% growth as they brought in $21.89 million.

If there is to be any reversal in this selling trend, bitcoin miners will need to see more cash flow from their mining operations. But since the price remains low, these miners are realizing less, dollar-wise, compared to a few months ago, while expenses such as electricity and machinery remain the same or even higher in some cases.

Featured image from Analytics Insight, chart from TradingView.com

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