Bitcoin miners change strategy: will the market benefit?

Sun June 30, 2024 ▪ 3 min reading ▪ by Luc Jose A.

A wind of change is blowing through the Bitcoin market. Miners appear to be taking a new approach in response to recent challenges. Recent data shows a decrease in BTC sales by these players. A new strategy which could herald a phase of consolidation and recovery for the crypto leader.

Bitcoin Miners Cut Back on Sales

Selling pressure from bitcoin minerswhich had weighed heavily on the market in recent months, is finally showing signs of calming down. According to a recent analysis by CryptoQuant, Miners significantly reduce their bitcoin salesa change that could mark a major turning point for the crypto market.

Last April’s halving reduced rewards from 6.25 BTC to 3.125 BTC per mined block. This event made several mining operations less profitable, forcing miners to sell more bitcoins to cover their operational costs. For example, Marathon Digital Holdings, one of the largest bitcoin mining companies, sold 1,400 BTC as of June 10, compared to just 390 BTC for May.

Fewer Bitcoin Sales by Miners: What Effects on the Price of Crypto?

The reduction in bitcoin sales by miners could impact the dynamics of the cryptocurrency market. Indeed, miners have long been key players in price movements, with their massive sales often exacerbating market declines. Now, with a notable decrease in selling pressure, the market could more easily absorb the remaining bitcoins, thereby reducing short-term volatility.

CryptoQuant’s latest data shows a decrease in bitcoin transfers from miners’ wallets, indicating increased retention of their assets. This downward trend in sales is partly due to better cost management and optimization of mining operations. Faced with a halving of mining rewards, miners have had to adapt their strategies to maintain profitability.

By holding on to more of their bitcoins, they appear to be betting on future price appreciation, which could stabilize the market in the medium term. If this trend continues, it could strengthen investor confidence and contribute to a more stable and predictable market environment.

Optimize your Cointribune experience with our “Read to Earn” program! Earn points for each article read and access exclusive rewards. Sign up now and start earning benefits.

Click here to join “Read to Earn” and turn your passion for crypto into rewards!

Luc José A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.

DISCLAIMER

The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.

Fuente