Bitcoin miners are still selling; Bearish sign?

As can be seen from the on-chain indicators, Bitcoin miners are still selling their reserves at a considerable speed; But how far will this flow of sales continue and how will its effect be in the long run?

To Report CryptoSlate Bitcoin’s price volatility has destroyed a significant portion of the cryptocurrency market in recent months, and is now slowly taking miners down with it. Miners, though often regarded as the cornerstones of the Bitcoin network and the most resilient players in the ecosystem, are currently suffering from rapidly shrinking profit margins.

The difficulty of the Bitcoin network is now only one percent away from its historical peak, and this is driving a significant portion of miners off the network. Mining profitability is on the verge of reaching one of its lowest levels in history; So that at the beginning of September, the miners’ income reached below 5,000 dollars per trace.

The simultaneous increase in difficulty and decrease in the profitability of Bitcoin mining forced miners to sell their Bitcoin reserves on a large scale. From July, when Inventory of bitcoin miners It peaked at 1.84 million units, and to date, these miners have sold over 12,000 bitcoins of their holdings.

As can be seen from the on-chain statistics, Bitcoin miners had also engaged in such a concerted sale in November 2021 (Aban 1400), when the price of Bitcoin had reached its historical peak. At that time, miners had sold a total of about 30,000 units. If miners are to follow the same pattern as last year this fall, we will see coordinated and larger sales in the coming weeks.

While the status of the above indicator shows that miners’ concerted selling has passed its peak or worst, the downward trend in Bitcoin miners’ inventory presents a different picture to analysts.

Some experts believe that the sale of miners over the past two months can benefit Bitcoin in the long run; Because the fluctuation in mining profitability makes the network empty of low productivity activities and weak miners. In the future, when stability returns to the market, the burden of Bitcoin network activity will be on the shoulders of the most flexible and profitable miners, and the network will be stronger for the next cycles and fluctuations.