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Bitcoin miners () listed on the stock exchange have sold nearly every Bitcoin they have exploited throughout 2022, leading to a discussion about whether sales have created "a persistent headwind" for the Bitcoin price or not.
Tom dunleavy analyst from blockchain messari research company shared data in a dec. 26 tweet, stating that about 40,300 of the 40,700 btc exploited by scientific core, riot, bitfarms, clean park, marathon, hut8, hive, iris energy, argo and digital bit of jan. 1 to Nov. 30 was sold off.
BTC miners sell roughly 100% of the coins they mine
The 10 public bitcoin miners
detailed here mined ~40.7k BTC and sold ~40.3k in 2022
This is a persistent headwind for BTC and for no other reason a good thesis to be bullish the ETHBTC ratio trade pic.twitter.com/L1iI6Z07p7
— Tom Dunleavy (@dunleavy89) December 26, 2022
Reserves held by mining companies fell dramatically in the second half of 2022, especially throughout the month of November, as the cryptography industry was shaken by the fallout from the FTX.
Dunleavy believes miners are constantly selling off bitcoin newly produced puts downward pressure on the price of the cryptocurrency's leading currency.
However, some industry commentators such as BitMEX’s former CEO, Arthur Hayes, believe the selling pressure created by the increased sales of Bitcoin miners is negligible.
He made his views known in December. 9 blog post that “even if miners sold all the Bitcoin they produced each day, it would barely impact the markets at all.”
According to Bitcoin Visuals, on Dec. 26 the daily trading volume for Bitcoin was $12.2 billion. The outflow from miners on the same day, according to CryptoQuant, was 919 BTC ($15.35 million), which represents just 0.13% of the total volume traded.
Mining reserves rebounded slightly in December, rising by almost one per cent. The number adds to the shared view in a dec. 27 post by crypto-analyst there technology as the situation for miners seems to be stabilization.
#Bitcoin miners - update. What's to be afraid of?
1.
Miner Outflow
Miner Inflow
Miner Reserve
White line on the bottom - miner to Exchange flow
2. Mining difficulty
3. Miner selling power
4. Hashrate 7D MA
Full analysishttps://t.co/E3o0cgaNxu
— IT Tech (@IT_Tech_PL) December 27, 2022
Related: BTC price dips 1% on Wall Street open as Bitcoin miners worry analysts
Miners have faced significant headwinds throughout the year, with high electricity prices, falling crypto market prices and a higher mining difficulty eating into their bottom line.
With the cost of production for miners increasing while the Bitcoin price has been decreasing, miners such as Core Scientific have been forced to sell some of their reserves at a loss to fund their ongoing operations and efforts to expand.
