Bitcoin Miners Balance Hits 4-Year High

Bitcoin (BTC) miners have suffered from debt and high operating costs due to the market slump. But this could change if the price of BTC rises again.

Bitcoin miners’ balance has reached a 4-year high. According to the latest Glassnode data, the numbers have surpassed 1,845,303 BTC.

From the massive exodus of Chinese miners in 2021 to the ongoing bear market, miners of the BTC network have experienced many challenges, including a shift in profitability. However, it seems they are “hodling” again. Despite minor setbacks, the trajectory for the total supply held in mining addresses has steadily increased since the beginning of the year.

The massive price drop has prompted miners to dispose of their assets to minimize possible damage. After years of accumulation, the participants of this network sold off a significant portion of their shares.

In fact, a handful of public miners are even selling more BTC than they made in May. Big players like Core Scientific have had to part with their BTC hoards to survive. in bad market conditions.

As a knock-on effect, the price of ASICs is also affected. The unprofitability of Bitcoin mining has led many miners to sell their mining hardware at a discount.

During this time, miners are said to be in the distribution phase, where fears of growing selling pressure due to a capitulation event could push prices further down in the short term. However, the latest reversal seen in the trend could prove to be bullish for Bitcoin.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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