Bitcoin Miners Selling More BTC Than They're Mining

The Ongoing Bitcoin Mining Crisis

In a startling revelation from Arcane Research, it appears that Bitcoin miners are caught in a perpetual game of survival, selling off more BTC than they actually produce. Imagine a hamster on a wheel, running like mad but getting nowhere — that’s the current state of the Bitcoin mining community.

Riding the Highs and Lows

Bitcoin recently dipped to around $25,000, yet this drop has provided a twisted sense of relief for miners who have faced intense pressure throughout 2022. At one point, whispers circulated that the cost of mining was far exceeding what miners could sell their BTC for, creating a perfect storm for panic sales.

Major Miners in Trouble

It was reported that one public miner, Core Scientific, sold an astonishing 12,000 BTC between May and July. If you’re keeping a scorecard, that ain’t good. And while it seemed like sales might lighten up last month, Arcane’s analyst Jaran Mellerud forewarns that without a significant price surge, miners will continue to deplete their holdings.

“The public miners sold 158% of their bitcoin production in July,” said Mellerud. “It’s the third month in a row they’ve outdone themselves.”

From Hoarding to Selling

Looking back to April 2022 paints a different story. At that time, miners were holding tight to their coins, with savings over 60% of their Bitcoin earnings through block subsidies. Fast forward to now, and those balances have plunged nearly 30%. It’s like trying to save money while going out every weekend — something’s got to give.

Future Sales Predictions

Mellerud estimates that miners will continue their fire sale mode, offloading between 4,000 to 6,000 BTC monthly, unless the Bitcoin price sees a miraculous recovery. Sounds like a crypto soap opera, doesn’t it?

Brightening Prospects for Miners

However, hope is not entirely lost. Cointelegraph has reported a significant rebound in revenue, marking a nearly 70% spike in August. Additionally, proof-of-work mining is gaining traction beyond crypto, attracting big investors like BlackRock, who seem to have decided the environmental concerns are so last season.

Improving Network Fundamentals

With steady improvements in Bitcoin fundamentals being monitored, the outlook is becoming slightly less grim. Data suggests that network difficulty may see a rise of around 0.7%, indicating a stabilizing trend for the Bitcoin backbone.