Bitcoin(BTC)has tanked by 10% in the past week. Analyzing the data it is evident that selling pressure from BTC Miners has contributed to the values of BTC falling below $19K.
Crypto expert Julio Moreno at Cryptoquant said that there has been a huge surge in miners who are selling their holdings of BTC tokens. This surge is also happening at a time when BTC values are at their lowest.
Bitcoin Miners Likely Behind Crash
Elaborating the BTC miner’s capitulation, Ki-Young Ju, CEO of CryptoQuant highlighted two different groups of Bitcoin miners. The first category includes the hard-core veteran miners who sell for a profit. The second is the new miners who have just stepped into crypto mining and are selling their holdings at a loss.
The latest bout of selling has severely dented the stability of BTC values at trade and Moreno mentions the diminishing returns for the miners over the time. Difficulty has surged and this has also surged the miner’s cost. . Mining difficulty was registered at 51% YoY when the BTC price dropped by 39% in the same period.
Bitfarms sells 3.53k Bitcoin
With the value of BTC tanking to record levels making the miners nervous who have turned sellers from hodlers. The flow of miners’ holdings of BTC tokens to the exchange surged in the month of June to 23K Bitcoins, the highest levels seen since May 2021. This has led miners to the “extremely underpaid” territory.
Bitfarms, a BTC mining company in its monthly report on July 1 said that 420 new BTC were minted during June 2022. It was a jump of 58% from June 2021.At the same time, the entity sold 3,353 Bitcoins during the month for an amount of $69 million. The portion of the money was used by them to pay down their facility.
The number one cryptocurrency price has dropped to touch the $17,800 price level earlier this month and has tanked by 35% in the past one month when last came was changing hands at $19,244.09 and 24 hours trading volume is down by 25.90 % to stand at $24,510,150,531.