Bitcoin miners have been bearing the brunt of the downtrend since its inception. They have watched the cash flow drop on their machines, forcing them to look for other ways to fund their operations. The natural response to this was for public miners to dive into their bitcoin reserves and start selling BTC to keep their operations going. For a while, it seemed that miners would stop selling due to the price rebound, but this is proving that it is not.
Miners are dumping more BTC
Bitcoin miners sold more bitcoins than they first mined in May. Then the same trend continued in June, when miners sold thousands of bitcoins to cover operational and other costs. It appears that this trend did not end in June either, as miners continued to sell coins.
Data shows that bitcoin miners have already sold 5,700 BTC in the month of July alone, the largest sale to date. These bitcoin miners once again sold more than they actually produced. In total, it was reported that 3,470 BTC were produced this month, which means they sold 50% more bitcoins than they mined.
Bitcoin miners sold more in a month when some were forced to shut down their operations due to rising temperatures. However, one of these miners were able to turn the situation around by making more money selling energy credits to the Texas government than they would in mining. The biggest sellers are 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 on the market. This means that whatever actions they take in relation to their portfolios can often have an impact on the market. Obviously, when miners do not have to sell their bitcoins, the price of the digital asset continues to rise, and vice versa when they get rid of their coins.
The sale came due to lower revenue generated on a daily basis, and with no significant increase in miners’ revenue, miners are expected to continue selling. Last week’s daily mining revenue was weak with just 1.58% growth, bringing in $21.89 million.
If there is any reversal in this selling trend, bitcoin miners will have to see more cash flow from their mining activities. However, since the price is still low, these miners realize less cost, compared to the last few months, 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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