"Bitcoin miners’ selling persists…worsening profitability amplifies supply pressure"
Summary
- Bitcoin miners are stepping up sales exceeding production and liquidation of holdings, keeping supply pressure in the market intact.
- They said hashprice declines have pushed some miners’ profitability below breakeven, with worsening mining economics cited as a factor behind increased selling.
- They said the market is analyzing that the timing of a decline in miners’ selling volumes and a shift to a holding strategy could become a key variable for a rebound in Bitcoin’s price.
Forecast Trend Report by Period
An analysis suggests that supply pressure in the market is continuing as Bitcoin (BTC) miners sell more than they produce.
According to CryptoSlate, a virtual-asset (cryptocurrency) media outlet, major miners have recently been raising cash by selling not only newly mined coins but also their existing holdings.
Riot Platforms, for example, mined 1,473 BTC in the first quarter of this year but sold 3,778 BTC over the same period, while Marathon was reported to have sold 15,133 BTC in March alone.
This trend is seen as stemming from deteriorating mining profitability. As hashprice (a mining profitability metric) has fallen sharply from a year earlier, some miners have dropped below breakeven.
The market is focusing on the fact that miners’ selling is acting as a persistent source of supply pressure on Bitcoin’s price. Miners are a key source of new Bitcoin supply each day, and if they also liquidate their holdings, circulating supply could expand further.
Still, some indicators—including a decline in mining difficulty—are also signaling that pressure on the mining industry may be easing. Analysts say the point at which miners’ selling volumes shrink and shift toward a holding strategy could be a key variable for a price rebound.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
