After a difficult period that slashed the prices of many of its digital assets, the cryptocurrency market seems to be slowly regaining its strength, easing up the selling pressure from public Bitcoin (BTC) miners as the price of the maiden token nears the $25,000 mark.
Specifically, public miners sold 6,500 of their Bitcoin holdings in July, compared to around 14,600 the month before, when they were forced to sell off their BTC on a major scale to keep their operations going, Arcane Research reported on August 15.
BTC sold by public miners per month since the start of 2022. Source: Jaran Mellerud
As a result, the BTC sell-off of publicly traded mining companies has more than halved between the two months, dropping close to 58%. However, it is still higher than in May, when public miners first faced the plummeting profitability of mining at a larger level.
Major BTC dumping started in May
In May, Bitcoin miners shocked the community by selling off more than 100% of their production. In June, public miners sold four times as much as in May, dumping nearly 400% of their production amid dramatically bearish market conditions.
According to Jaran Mellerud at Arcane Research, although the July figures demonstrate that the sell-offs have continued, they are “not nearly to the same extent as during the mining bloodbath earlier this summer.”
The analyst explained this change by highlighting “the dark side of the ‘hodl at any cost strategy’:
“The dark side of the ‘hodl at any cost strategy,’ which has become evident by now, is that the lower the Bitcoin price goes, the more likely miners who follow this strategy are to sell their Bitcoin.”
In other words, as Bitcoin recovered 26% of its price in July, public miners could take a breather and ease up on their forced selling, although it did “persist to a significant degree,” as Mellerud expected.
What awaits public miners in the future?
Currently, the flagship digital asset is experiencing a moderate two-month-old price uptrend despite a short-term price correction, which crypto trading expert Michaël van de Poppe doesn’t see as alarming, Finbold reported earlier.
At press time, Bitcoin was trading at $24,043, down 0.07% on the day but up 0.96% across the previous seven days, according to CoinMarketCap data retrieved on August 15.
Given that the price has also gained 11.95% compared to 30 days ago, it could potentially signal a further decrease in the selling pressure on public miners.
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