As Bitcoin Slumps, BTC Miners Sell Of Their Tokens Creating Panic In The Market
08 Giugno 2022 - 2:00PM
NEWSBTC
The broader crypto market has been in a state of a downward price
swing, with Bitcoin going lower almost daily. Before now, Bitcoin
miners have put away some BTC tokens waiting for their sunny days
to reap. However, the continuous price drop of virtual assets has
set a constant downtrend for the most significant crypto token.
Hence, miners are selling out their holdings to flatten the rising
costs of operations and other activities as Bitcoin makes some
rebounding steps. As per reports, there is an increase in the
transfer of BTC tokens from miners to exchanges. The record shows a
progressive rise from January, with the highest value for May at
195,663 BTC. With BTC’s average price of $32K in May, the total
value is $6.3 billion for the sold tokens. Related Reading
| Bitcoin Bullish Signal: 1k-10k BTC Holders Have Been Buying
Recently The high value could not possibly be just a sell-off from
miners. Some of them could move their holding for other
transactions in exchanges. Also, some prominent firms might have
transferred vast amounts of the BTC tokens for sale through
exchanges. With Bitcoin’s price having dropped about 35% this year,
different categories of sellers are emerging in the market. Some
small-scale miners encountered enormous liquidation challenges.
Riot Blockchain Inc. is part of the sellers. The public trading
miners were involved in BTC stockpiling through price bets for
token appreciation. In addition, equity investors have been using
the firm as a proxy to receive cryptocurrency exposure that cuts
absolute ownership of the assets. Reasons For The Increased Bitcoin
Sell-Off From Miners With the trend of events within the bear
market, holding on to cash for large-scale miners is becoming more
complex. This is due to the inability to raise funds through stock
sales or debts. Hence, they are placing their hunts for more profit
through possible expansions. An example is the recent Riot’s
ongoing mining facility which they are building in Texas with a
1-gigawatt capacity. This new move was a project kick-off after
they finished their mining farm of 750 megawatt, which remains
among the largest ones in the US. While reacting to the situation,
Will Foxley, Compass Mining’s content director, offers his opinion
on the BTC sales. He stated that miners might be focusing on a
larger crypto environment. Hence, they see it as a wise opportunity
to sell their BTC holdings to retain the safety of their
operations. The entire saga falls back on the challenges miners
face during the low-price drop in the market. Some miners have
ordered machines in the BTC bullish trend for months. So, even with
the price drop, they are still expected to complete the payment.
Related Reading | Bullish: Bitcoin Marks First Green Weekly
Close After Two Months In The Red Matthew Schultz, CleanSpark
executive chairman, reports that some miners will have no option of
weathering the storm but to liquidate their holdings. Featured
image from Pexels, charts from TradingView.com
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