Arcane Research has made a new prediction that miners will continue selling more BTC than what they earn, according to their latest forecast.
Since May, miners have sold almost 30% of the record BTC stock
This month’s $25,000 increase in Bitcoin mining has helped to ease the pressure on an industry that has struggled all through 2022.
There were fears that miners’ production costs would be much higher than the Bitcoin spot price and that this would lead to miners having to sell a lot in order to remain in business. Many may need to retire entirely if their activities are no longer financially sustainable.
Data from the May period seemed to support this claim. Arcane points out that Core Scientific, a public miner, sold approximately 12,000 BTC during the May-July period.
Although the trend did show signs of reversing last week, it will still take higher BTC prices for even the most powerful mining companies to hodl again.
Jaran Mellerud, an Arcane analyst, explained that even though public miners sold less in July than in June they still drain their holdings by looking at the percentage of bitcoin produced sold.
“The public miners sold 158% off their July bitcoin production, marking the third consecutive month of selling more than 100%.”
Screenshot of the Bitcoin public miner sales chart Source: Arcane Research
To give you some context, April 2022 saw miners’ hodled coin sales at their highest level ever. This was due to miners having saved at least 60% of BTC each month via block subsidies.
However, after subsequent sales, their balance has trended towards 30% lower and will continue to climb until the monthly expense equilibrium has been restored.
“Unless something major happens to bitcoin’s price, I expect that the selling pressure will continue to be between 100% and 15%0% of production.” Mellerud said that this is equal to between 4,000-6,000 BTC per monthly.
Although Bitcoin (BTC), may have increased 36% since its June lows but miners will still feel the pain.
There is light at the end
Cointelegraph reported that miners may soon see a welcome return to good times.
Similar: BTC mining stocks double in one month due to production ramps
August saw a 70% increase in revenue, and Proof-of-Work mining is becoming more prominent than ever before.
BlackRock, the largest asset manager in the world, has praised the sector for its ability to attract big money despite environmental concerns.
The steady increase in Bitcoin fundamentals provides real-time evidence that the situation is stabilizing. According to BTC.com, difficulty will rise by 0.7% each week.
Screenshot of the Bitcoin network basics overview. Source: BTC.comcom. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.