The bear market has been going on for a year now. Who still has the strength to sell their BTC after 365 days of suffering and pain in the crypto market? The answer is simple: Bitcoin miners.
Rising global electricity prices and the falling price of BTC have made cryptocurrency mining increasingly unprofitable. Retail Bitcoin miners, who were hit earliest by mining costs, had to shut down their rigs some time ago. Meanwhile, the current declines in the price of BTC have meant that even large mining pools today have to sell more coins to maintain their business.
In today’s analysis, BeInCrypto looks at the indicators of Bitcoin Production Cost and Bitcoin Miner Sell Pressure (BMSP). In addition, we compare them with the recent breakout on the chart of BTC inflows to exchanges and with the Bitcoin network hashrate.
Why do Bitcoin miners sell?
There are two main reasons why Bitcoin miners are willing to sell their coins. On the one hand, there are huge profits when BTC prices are high. Then, increased sales by miners signal a major overvaluation of the cryptocurrency market and usually occur during and at the end of a long-term bull market.
On the other hand, the reason for selling can be extremely low BTC prices. These make maintaining the Bitcoin mining business on the brink of profitability. Bitcoin miners then sell more than usual in order to cover current business costs and stay afloat in the bleeding market.