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Friday, February 3, 2023

Bitcoin Miners Sold All BTC Mined In 2022: They Are On A Buying Spree Again

2022 has been a challenging year for Bitcoin miners starting with the crash in the cryptocurrency market, the high energy costs, and the increased challenging they face in mining. Bitcoin miners listed on exchanges in 2022 sold most of all the Bitcoins they mined. But this led to the suggestion that their sales negatively impacted Bitcoin prices.

People contended that sales made by the Bitcoin miners led to a running impediment for the prices of Bitcoin, though others disagreed. During the third and fourth quarters of 2022, especially in November, Bitcoin reserves held by the mining companies revealed a significant decrease. This came about at a time just when the cryptocurrency market was going through a deep crisis as a consequence of the FTX-led fallout.

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Tom Dunleavy, an analyst with Messari, a company engaged in blockchain research, tweeted information that revealed that between the beginning of January and the end of November, Bitcoin miners such as Riot, Bitfarms, Core Scientific, Marathon, Clean Park, Iris Energy, Bit Digital, Hive, and Argo dumped close to 40,300 mined Bitcoins.

The total coins mined by these Bitcoin miners was 40,700. Dunleavy says that the continuous selling of such Bitcoin that were newly mined by these Bitcoin miners.

Not All Insiders Buy The Story That The Bitcoin Miners Were Responsible For The Crash In BTC Prices

But other crypto industry insiders, such as BitMEX’s former CEO, Arthur Hayes believe that the downslide in Bitcoin prices was not solely due to the increase in the volume of sales by BTC miners.

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Hayes posted in December that if all the BTC miners had dumped the BTC they produced each day, there was no way the market would be affected the way he did. The daily Bitcoin volume traded on December 26 was around $12.2 billion. And on that day, Bitcoin miners sold 919 BTC worth only around $15.35 million, which comes to only around 0.13% of the total traded volume.

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