The cryptocurrency market entered a sell-off phase in the first week of June, seeing a market-wide course, with most cryptocurrencies falling to 4-year lows.
Decorative market conditions have also affected Bitcoin (bitcoin) mining profitability is adversely affected, forcing miners to liquidate their BTC holdings.
new data Research from Arcane shows that public bitcoin mining companies sold 100% of their BTC production in May, compared to the usual 20-40% previously.
In the first four months of 2022, public BTC mining companies sold 30% of their mining production, which tripled in May and is expected to grow further in June.
While public BTC miners only account for 20% of the network’s total computing power, their behavior also tends to reflect the sentiment of private miners.
Miners hold a total of 800,000 BTC, making them one of the biggest whales in the market. Of this, public miners hold 46,000 BTC, and their frenzied selling could push prices down further.
The situation only deteriorated further in June, as Bitcoin prices fell below the 2017 high of $20,000 and set a new four-year low of $17,783. Miner’s to exchange flow, a data metric showing the amount of BTC sent by miners to exchanges hit a new high in June, reaching the highest level since January 2021.
As Cointelegraph reported earlier, BTC miner-to-exchange traffic ratio hits 7-month high When BTC price fell below $21,000. The drop in the price of BTC has also made many miners unprofitable, forcing miners to leave the crypto market.
Bitcoin hash price is a mining metric that represents miners’ income on a per terahash basis. It is the average daily reward (in fiat currency) that miners receive per terahash calculation (USD/THB/sec per day), which has fallen to a new 1.5-year low.
The Bitcoin Hash Ribbon, an indicator that attempts to identify a period when BTC miners are struggling and possibly capitulating, has crossed, indicating that many miners are unplugging their machines due to a lack of profitability.
Amid the BTC price drop and the miner crisis, many see it as a strong price bottoming signal as well, especially when miners start to give up.
⚠️ Hash Ribbon Indicator: USD Bitcoin Miners surrendered ⚠️
This distress signal appeared 9 days ago and could signal a price bottom is imminent!
– Baranito ₿ (@ElBaranito) June 18, 2022
BTC dipped below $21,000 again, trading just above $20,000 at press time, down 6% over the past 24 hours.