Bitcoin miners sell their holdings amid crypto winter's chill

economictimes.indiatimes.com:

Bitcoin miners have been forced to tap into their cryptocurrency stashes as a plunge in prices, rising energy costs and increased competition bite into profitability. The number of coins miners are sending to crypto exchanges has been steadily climbing since June 7, researchers at MacroHive noted, in a sign that «miners have been increasingly liquidating their coins on exchanges.» Several publicly listed bitcoin miners collectively sold more than 100% of their entire output in May as the value of bitcoin tumbled 45%, an analysis by Arcane Research https://tmsnrt.rs/3nhYdHA found.

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«The plummeting profitability of mining forced these miners to increase their selling rate to more than 100% of their output in May. The conditions have worsened in June, meaning they are likely selling even more,» said Arcane analyst Jaran Mellerud. Bitcoin sales by public miners https://fingfx.thomsonreuters.com/gfx/mkt/gkplgejyyvb/bitcoin%20mining.JPG Bitcoin miners, who run networks of computers to earn tokens by validating transactions on the blockchain, are typically staunch crypto «HODLers» and collectively own around 800,000 bitcoins, according to CoinMetrics data. The crypto mining space rapidly expanded in 2021 as bitcoin more than quadrupled in value, but this growth has further pressured margins as the process is designed to grow more difficult as the number of miners increases. «Over the past six months, hash rate and mining difficulty have increased while the price of bitcoin has dropped. These are both negatives for existing miners as both work to compress