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Cryptocurrency miners have sold all the bitcoin mined in 2022
Tom Dunleavy, an analyst at cryptocurrency research company Messari, believes that miners who immediately sell their mined BTC have a bad impact on the price of the flagship cryptocurrency. The expert said that large mining companies sold 40,300 of the 40,700 bitcoins minted in 2022. Among them are Core Scientific, Argo, Marathon, Iris Energy, Bitfarms, and Riots. The firms sold the cryptocurrency between January 1 and November 30. Miners' digital currency stocks declined the most in the second half of November, as the cryptocurrency industry suffered significant losses after the default of the FTX cryptocurrency exchange.
BTC miners sell roughly 100% of the coins they mine
The 10 public bitcoin miners
detailed here mined ~40.7k BTC and sold ~40.3k in 2022This is a persistent headwind for BTC and for no other reason a good thesis to be bullish the ETHBTC ratio trade pic.twitter.com/L1iI6Z07p7
— Tom Dunleavy (@dunleavy89) December 26, 2022
Instead, Arthur Hayes, the former CEO of BitMEX, said that the sale of BTC has no impact on the price of digital gold. «Even if miners sell all the cryptocurrency they have mined, it will not affect its price much. If you had to sell a large amount of cryptocurrency, you would have already done so. There' s no reason to hold back if you need fiat to stay afloat,» Hayes wrote in his blog.
The profitability of cryptocurrency mining in 2022 fell significantly. Some mining companies are selling off their rigs, hoping to cover losses due to the fall in the value of digital assets on the market. The sale of equipment is also caused by the need to pay off loans that have not paid off — during the period of rising cryptocurrency prices, miners actively purchased equipment and rented premises for them, often by borrowing money.
It should be added that, according to CoinMarketCap, BTC trading volume as of December 28 was about $ 3.1 billion, with daily losses of BTC on the market amounting to $ 15.3 million, which is only 0.13% of the total trading volume.