On the surface, it looks like the crypto market is slowly returning to normal. Still, the recent activity of Bitcoin miners is telling us otherwise.
Bitcoin miners are notorious for their “HODL” policy, which preaches on holding the mined coins and driving the price up. However, this became a risky strategy in the wake of the crypto market crisis and rising costs, prompting even the most prominent “HODL” enthusiasts to start dipping into their Bitcoin stashes.
It is estimated that 195,663 coins were transferred to exchanges back in May, and the trend continued in June. The crypto research firm Arcane Research reports that some major Bitcoin miners have even sold their entire output from last month. Others are selling more than they are able to mine.
“The conditions have worsened in June, meaning they are likely selling even more,” said Arcane’s analyst Jaran Mellerud via Reuters.
The major drive behind the selloff is the challenging environment miners face. It’s becoming harder than ever to mine for Bitcoin while the high energy prices are putting a dent in profitability. Of course, the plunging prices of Bitcoin also don’t help.
After peaking at $64,440 in late 2021, Bitcoin lost 70 percent of its value in June. The world’s most popular cryptocurrency dipped below $19,000 at one point and is now hovering around $20,000.
