Bitcoin Miners Dump Over 7000 BTC To The Market In The Past Week Alone
According to reports, Bitcoin miners have sold more than 7000 BTC since last week; Its reserves were reduced by 10% as a result of this dump. The market was impacted by a sharp decline in bitcoin’s price as miners were forced to sell their assets due to the heat of the crypto winter and the FTX crash.
Miners Are Dumping Their Bitcoins
The holdings of miners have significantly decreased, according to Glassnode reports, and this is the most significant decline since 2018.
This information was gathered from the Miner’s Balance, a metric that shows the overall holdings of Bitcoin held in miners’ wallets.
This metric tracks miners’ activities; when this metric goes up, it reveals that miners are transferring bitcoin assets to their wallets. If this trend continues for an extended period of time, it will result in a buildup of funds from miners, potentially leading to a bull season.
A decline in this metric however shows that miners are selling and dumping their tokens or withdrawing their tokens from this reserve, which could indicate a bearish season for the crypto market.
Glassnode data revealed a massive drop in the Bitcoin miners metric as a result of the FTX crash, which shook the market and caused prices to plummet. Over 7000 BTC were withdrawn and dumped, representing a 10% decrease from the previous week’s reserve.
Metrics Used To Track Miners’ Activities
This data included the net flow of this metric, which measures the total coins in possession as well as the total coins withdrawn from the miner’s wallet.
According to the said tool, miners are currently spending at a rate of 6400 BTC per month, which is higher than any other period in previous years.
Also, per the findings of this data metric analysis, this is the steepest decline since 2018.
Miners have been under a lot of pressure since the latest crash, from high energy costs to machinery maintenance; they even had to cut down on the purchase of mining machinery due to the heat of this crypto winter. This bear market has reduced miners’ profits while consuming and requiring excessive energy to mine.
This new price drop has left miners with no choice but to sell off their holdings in order to recover from the market crash. As a result of the 7000 BTC being dumped into the market, the bitcoin market fell steeply.
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