Bitcoin miners sold over $300 million worth of BTC in the last week


In a week when Bitcoin has started to show some recovery, positive signals tend to show a little more concern. Bitcoin miners are investing a large number of coins in the market, something that is always a concern when it comes to price stability.

Blockchain analytics firm data CryptoQuant they show that miners are rapidly exiting their Bitcoin positions. The data reveals that around 14,000BTCworth just over $300 million, were transferred from miner-owned wallets in a single day late last week.

Additionally, miners have dumped more Bitcoin in recent weeks than in any other period since January 2021.

drop signal

This movement is worrisome due to a phenomenon called Mining Capitulation and generally indicates that these mining farms are preparing to sell their stored coins to cover ongoing mining expenses.

For the Citi analyst Joseph Ayoub, this is a sign that the price of Bitcoin is not compensating for the expense of the mining equipment.

“Given the increase in electricity costs and the sharp drop in the price of Bitcoin, the cost of mining a Bitcoin may be higher than its price for some miners.”

Core Scientific, one of the largest publicly traded cryptocurrency mining companies in the United States, sold almost all of its bitcoins in June. The CEO Mike Levitt he told CNBC that like any other business, bitcoin miners have to pay their bills.

“We mine and earn or produce Bitcoin, but our costs, expenses and liabilities are in dollars,” Levitt said.

Avoid mining losses

With this, it is necessary to sell the assets, especially in low moments, so as not to operate at a loss. However, Levitt still claims that it is profitable to mine cryptocurrencies, with margins of around 50% throughout the industry.

But it is still below 80% margins at the end of 2021, when Bitcoin approached its highest price.

It is worth mentioning that the CryptoQuant data takes into account the closing of last week and it was precisely this last Monday that Bitcoin showed a slight recovery, breaking the $23k markwhich has been seen as something very positive.

This eviction does not seem to have affected this movement and surely the big portfolios will be considering whether it is worth selling in the short term with this new twist.

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