Summary:<\/p>\n
Bitcoin miners sold almost 25% of their BTC holdings in June at fire-sale prices.<\/p>\n
According to a report<\/a> by the team at Arcane Research, Bitcoin miners<\/a> sold roughly 14,600 BTC in June, which was ‘almost four times as much as in the previous month of May.’ The report explained that public miners had produced 3,900 Bitcoin this month, which means they have sold 400% of their production, draining their holdings by the earlier mentioned 25%.<\/p>\n The Arcane Research team also pointed out that the Bitcoin miners<\/a> were selling their BTC to ‘pay for upcoming infrastructure upgrades and machine deliveries.’<\/p>\n In a similar analysis, Will Clemente, a lead insights analyst at Blockware Solutions, had identified the selling of BTC by miners as possible capitulation. He explained that the ongoing market drawdown is compressing profit margins for Bitcoin miners. He said<\/a>:<\/p>\n You can think of miners as being short hash, difficulty (a bi-product of hash), and energy costs; while being long Bitcoin\u2019s price. As this ramp-up of new machines being plugged in takes place and Bitcoin\u2019s price draws down, miners\u2019 margins get compressed.<\/p><\/blockquote>\n He also observed that hash-ribbons belonging to the 30-day moving average and the 60-day moving average were about to cross in a bearish manner providing further evidence of miner capitulation. He shared his analysis in the below two tweets.<\/p>\n (3\/3) Currently, we have seen a bearish cross take place, indicating we are indeed in a period of miner capitulation. pic.twitter.com\/YZrKrsp7Gz<\/a><\/p>\n — Will Clemente (@WClementeIII) July 15, 2022<\/a><\/p><\/blockquote>\nBitcoin Miners Have Been Selling to Free Up Liquidity to Pay for Infrastructure Upgrades and Machine Deliveries.<\/h2>\n
Bitcoin Selling by Miners Hints at Capitulation.<\/h2>\n
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