Bitcoin miners are among the longest BTC holders, but that’s when the bull market is booming and they don’t need cash. As the price of bitcoin continues to drop, bitcoin miners’ cash flow has dropped. Miners are dropping currencies to keep their businesses running.
Since the crypto winter started with Terra Network’s bankruptcy in May, Bitcoin miners have sold off their BTC to live. BTC miners are selling more in recent months.
Glassnode reports that miners have sold 7,700 BTC in 7 days due to the current crypto price slump. This is the biggest dump by miners in four years, causing their balances to fall. Miners sold 7,761 BTC. Miner BTC holdings fell 10% in 7 days, nearing a one-year low.
The decrease in bitcoin price is driving miners’ sell-offs. Low BTC prices harm miner profit margins and investor sentiment.
Bitcoin mining company shares have plunged as investors remain sceptical about crypto. Mining firms must use their BTC reserves for cash flow.
Miners may continue selling BTC as the market hasn’t struck a bottom. If prices fall, more miners will sell for cash. Miners are adding supply to a market with insufficient demand. As the FTX disaster develops over the coming several months, bitcoin’s price is expected to fall.