A look at the data shows that Bitcoin miners are starting to move their holdings. If these assets are liquidated, they can increase the selling pressure and lead to a possible decrease in the price of Bitcoin.
According to BINCrypto, the analysis platform of such cryptocurrency has investigated the behavior of Bitcoin miners in its latest report on May 19 (May 29). This company wrote part of its report:
Bitcoin miners’ reserves are decreasing, which could mean that they are under selling pressure.
The chart below shows the sharp drop in miners’ Bitcoin reserves after the Bitcoin price spike in mid-April. At the end of this month, we also saw a smaller drop in the index, both of which were accompanied by a decrease in the price of Bitcoin.
According to CryptoQuant, the latest decline in miners’ reserves this week has been accompanied by an increase in the inflow of Bitcoins to the Binance exchange.
Are bitcoin miners ready for sale?
The company detected two transactions worth a total of 1,750 bitcoins from miners’ wallets to Binance.
CryptoQuant added that these bitcoins, which are currently worth about $47 million, belong to the Poolin mining pool. This coin belongs to only one bitcoin miner, while they usually sell their bitcoins at the same time. Therefore, there is a possibility of downward pressure on the market.
Analyzing company Glassnode also reported on May 18 (May 28) that the profitability of Bitcoin mining has also decreased.
Examining the number of days when the miners’ income exceeded the production cost shows that on average, mining was profitable for miners in 47.7% of the days and 52.3% of the days were not profitable.
According to the Hashrate Index, the mining profit or hash price per day has decreased to $0.076 per terahertz per second. However, the hash price increased to $0.127 on May 9 (May 19) due to the increase in transactions caused by the hype of multiplying memecoins in the Bitcoin network.
Hash price has also decreased by 38% compared to the same period last year, which has reduced the profitability of Bitcoin mining.
Furthermore, according to data from BitInfoCharts, the hash rate is currently near its all-time high of 373 exahashes per second. This issue, along with the difficulty of the network reaching its highest level and the high price of energy, shows that Bitcoin miners are currently going through difficult conditions.
Sellers are waiting for the price of Bitcoin to drop
Further selling pressure could come from a large number of Bitcoin options contracts expiring soon.
Bitcoin price is down more than 2.5% from last week’s high on Monday of around $27,500 and is trading in the $26,800 range at the time of writing.
In case of increasing selling pressure, there is a possibility that the price will decrease first to the support level of $26,300 and then to $25,000. However, the long-term outlook for Bitcoin price seems to remain bullish.