Sat June 29, 2024
3
min read by
Luc Jose A.
A wind of change is blowing through the Bitcoin market. Miners seem to be taking a new approach to the recent challenges. Recent data shows a decrease in BTC sales by these players. A new strategy that could well herald a phase of consolidation and recovery for the flagship crypto.
Bitcoin miners reduce sales
The selling pressure from bitcoin miners, which has weighed heavily on the market in recent months, is finally showing signs of easing. According to a recent analysis by CryptoQuant, miners are significantly reducing their bitcoin sales, a shift that could mark a significant turning point for the crypto market.
Last April’s halving reduced rewards from 6.25 BTC to 3.125 BTC per block mined. This event made many mining operations less profitable, forcing miners to sell more bitcoins to cover their operational costs. For example, Marathon Digital Holdings, one of the largest bitcoin mining companies, sold 1,400 BTC as of June 10, compared to just 390 BTC for the month of May.
Fewer bitcoin sales by miners: what effects on the price of crypto?
The reduction in bitcoin sales by miners could impact the dynamics of the crypto market. Indeed, miners have long been key players in price movements, with their massive sales often exacerbating market declines. Now, with a notable decrease in selling pressure, the market could more easily absorb the remaining bitcoins, thereby reducing short-term volatility.
CryptoQuant’s latest data shows a decline in bitcoin transfers from miners’ wallets, indicating increased retention of their assets. This downward trend in sales is partly due to better cost management and optimization of mining operations. Miners, faced with a halving of mining rewards, have had to adapt their strategies to maintain profitability.
By holding on to more of their bitcoins, they appear to be betting on future price appreciation, which could stabilize the market in the medium term. If this trend continues, it could boost investor confidence and contribute to a more stable and predictable market environment.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views and opinions expressed in this article are those of the author and should not be considered investment advice. Please conduct your own research before making any investment decisions.
