The broader cryptocurrency market has been in a bearish price swing, with bitcoin dropping almost daily. Before now, bitcoin miners had put some BTC tokens waiting to reap their sunny days. However, the continued decline in the price of virtual assets has set a steady downtrend for the most important cryptocurrency.
Hence, miners sell their holdings to settle the rising costs of operations and other activities as Bitcoin makes some rebound steps.
according to ReportsThere is an increase in BTC transfers from miners to exchanges. The record shows a gradual rise from January, with the highest value for May at 19,563 bitcoins. With an average BTC price of $32,000 in May, the total value of the tokens sold is $6.3 billion.
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The high value cannot just be a sale by the miners. Some of them can transfer their holdings to other transactions on the stock exchanges. Also, some notable companies may have transferred huge amounts of BTC tokens for sale through exchanges.
With the price of Bitcoin dropping about 35% this year, different classes of sellers have appeared in the market. Some miners on a small scale have faced enormous filtering challenges.
Riot Blockchain Inc. part of the sellers. General trade miners participated in hoarding BTC through price bets to raise the value of the token. In addition, stock investors use the company as an agent to receive exposure to cryptocurrencies that reduce the absolute ownership of the assets.
Reasons for increasing bitcoin selling from miners
With the trend of events inside the bear market, holding cash for miners on a large scale is becoming more and more complicated. This is due to the inability to raise funds through the sale of shares or debt. Hence, they seek more profits through potential expansions.
An example is the 1 gigawatt continuous mining facility Riot is building in Texas. This new move was a launch for a project after they completed their 750 megawatt mining farm, which is still among the largest in the United States.
While responding to the situation, Will Foxley, Content Manager at Compass Mining, gives his opinion on BTC sales. He stated that miners might focus on a larger crypto environment. Hence, they see it as a wise opportunity to sell their BTC holdings to maintain the integrity of their operations.
The whole story goes back to the challenges miners face during the falling market price. Some miners have been ordering machines on the upside of Bitcoin for several months. Therefore, even with the lower price, they are still expected to complete the payment.
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Matthew Schultz, CEO of CleanSpark, reports that some miners will have no choice in weathering the storm but to liquidate their holdings.
Featured image from Pexels, charts from TradingView.com