Arcane Research: Miners continue to sell more BTC than they mine

Arcane Research: Miners continue to sell more BTC than they mine

The research agency Arcane Research, having studied the mining market for 2022, came to the conclusion that the crisis almost led it to collapse and it will take time for the sector to recover.

The analytical company Arcane Research, having studied the mining market, came to the conclusion that the crisis almost led it to collapse and it will take time to restore this sector.

According to a report from Arcane Research, Bitcoin miners have sold 30% of accumulated BTC since May. Experts note that the rise in the price of the first cryptocurrency this month has reduced the pressure on bitcoin miners. Earlier, there were concerns in the community that the cost of mining would become much higher than the spot price of bitcoin. This could lead to the fact that many miners would leave the market, as the mining of cryptocurrencies would become unprofitable. 

Analysts noted that since May 2022, miners have been facing major shocks. For example, the public mining company Core Scientific sold about 12,000 BTC between May and July. Analyst Jaran Mellerud warns that although there were all signs of a trend reversal last month, it will take time for the price of bitcoin to rise to a level where the largest mining operators will again hold bitcoin reserves.

“Despite the fact that in July miners sold less than half of the volume of BTC that was sold in June, if we look at the percentage of bitcoins sold, we still see that they continue to sell their assets. For example, miners sold 158% bitcoins in July, which was the third consecutive month that they sold over 100% mined BTC,” he explained.

Arcane Research: Miners continue to sell more BTC than they mine

CoinShares expert Matthew Kimmell said in July that the sale of mining equipment to subsidiary Celsius could lead to a drop in miner prices and increase negative pressure on the market.

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