- Public miners have started lessening the amount of bitcoins being sold.
- In July, the amount of BTC sold was cut by almost double.
- Bitcoin touched the $25,000 ceiling briefly and is currently changing hands at $24,000.
The amount of bitcoins (BTC) being sold by public miners has dramatically decreased in the month of July, according to Arcane Research. In fact, the chart says that the figure was cut by almost double.
The public miners are still dumping their #bitcoin holdings, but not nearly to the same extent as during the mining bloodbath earlier this summer.
They “only” sold 6,200 BTC in July, less than half the amount they sold the previous month. pic.twitter.com/tAmHXkQjoo
— Jaran Mellerud (@JMellerud) August 15, 2022
As seen on the tweet, mining firms sold huge amounts of bitcoins in June to resume their operations. During that month, the price of BTC fell to as low as $17,000. In retrospect, this is what appears to be the floor price of BTC between 2021 and 2022. Given the market situation at the press time, these mining firms capitulated so that they would be able to continue their operations.
The situation changed somehow in July, as the crypto market started to recover. However, Arcane Research analyst Jaran Mellerud said that mining firms still sold more bitcoins than they mined in July. In fact, Mellerud estimated the figure to be 158% of the mining firms’ operation last month.
Bitfarms and Core Scientific were the mining companies that sold the most bitcoins in July. According to Arcane Research, this is because these firms have sizable bitcoin and machine collateralized debt positions.
As for the reason for the decrease in selling, some people claimed that this is due to BTC starting to recover in price again. In fact, BTC touched the $25,000 ceiling briefly – this price was last seen in June before BTC touched rock bottom.
At the time of writing, BTC is changing hands at $24,024.21, as per CoinGecko. Coincidentally, the US is also about to sign the Inflation Reduction Act this week. It is not sure how this will affect the greater crypto space, but historically, it is during these periods of uncertainty that most cryptocurrencies experience price pullbacks.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CE. No information in this article should be interpreted as investment advice. CE encourages all users to do their own research before investing in cryptocurrencies.
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