Major Selling Recorded in 3 Months has Lowered Hodl Level of Bitcoin Miners by 27%
Arcane Research has recently shared an alarming piece of information with the entire Bitcoin (BTC) community. The announcement by the firm may cause the trading price of Bitcoin to lower as the investors may lose their confidence in the largest cryptocurrency.
Arcane Research Makes a Fresh Prediction
Ever since the demise of the cryptocurrency industry came, investors have continued selling Bitcoin on a larger scale.
Even the likes of Elon Musk had to sell Bitcoin because of the constant downhill movement of the digital asset since the beginning of 2022.
Arcane Research, a major cryptocurrency analysis firm has made a prediction surrounding the Bitcoin selling activities.
The firm had recently revealed that the Bitcoin miners had been selling Bitcoin on a large scale. However, many hoped that the selling of Bitcoin may come to an end.
When that happens, the trading price of Bitcoin may continue rising and it will become less volatile. However, Arcane Research has unfortunate news for analysts and investors.
The firm has predicted that the cryptocurrency miners, especially, the Bitcoin miners will continue selling Bitcoin. The number of Bitcoin they sell would be more than the number of Bitcoin they mine in a particular period.
The reason behind Selling Mined Bitcoin
According to the firm, the Bitcoin mining sector felt less pressurized as the price of Bitcoin reached up to $25,000 and crossed the level.
However, from the beginning of 2022 until Bitcoin’s price grew over the $25k mark, the Bitcoin miners had been struggling.
The reason why the miners continued selling Bitcoin in their stash since the start of 2022 was because of the mining cost of Bitcoin.
Bitcoin now requires a tremendous amount of hash rate that is achieved with the deployment of mining centers at an enormous rate.
Such mining centers require a tremendous amount of electricity and maintenance costs, which was not bearable for many mining centers given the price of Bitcoin was as low as $18k.
As the price of Bitcoin fell tremendously low, the Bitcoin miners had to sell the digital asset to cover their losses and to keep their centers running.
Bitcoin was sold by Core Scientific from May to July
The data collected by Arcane Research shows that as Bitcoin is still struggling to keep its head high, the miners are constantly selling Bitcoin.
The data suggests that one of the major Bitcoin miners alone sold around 12,000 Bitcoin from the month of May to the month of July. The name of the particular mining company is Core Scientific.
On an overall scale, the total amount of Bitcoin sold by the Bitcoin miners is 158% of their combined Bitcoin production in the particular (May to July) period.
