Bitcoin miners seem to be giving up on the prospect of holding the maiden crypto for long-term profit as they continue to sell large sums of the digital coin.
According to data shared by CryptoQuant, as of December 1, bitcoin miners have already dumped 10,000 units of BTC.
The number is significantly lower compared to what was observed on November 26 when the market witnessed an inflow of 2,569 units of the cryptocurrency that were also sold by its miners.
CryptoQuant analyst Joaowedson shared some insights regarding the matter and made mention of the current cost of Bitcoin mining and the slumping price of the crypto asset as reasons for this development.
“Faced with the current price of Bitcoin and the high cost of mining in several countries, miners are being forced to sell their positions,“ Joaowedson said.
Bitcoin Miners Already Deprived Of Profit Opportunity
The current situation spells doom for both the “producers” of the largest cryptocurrency in terms of market capitalization and the asset itself.
With the significantly lowered price of BTC and the cost it takes to produce one unit of it, Bitcoin miners face the possibility of not gaining any profit at all in their operations.
Moreover, as they continue to dump the fruits of their labor in the market, there is always the possibility that the crypto’s price will decline and that its volatility will increase furthermore.
Mining revenue has also been affected by the past selloffs that the market has witnessed. According to data from Glassnode, at the time of this writing, the income of Bitcoin miners stood at 814.28 BTC.
With this, it only made sense to arrive at the notion that in terms of fees and rewards, Bitcoin had nothing much to offer for its miners.
A Quick Look At Bitcoin’s Performance
At press time, according to tracking from Coingecko, Bitcoin was changing hands at $17,025, with an increase of 3.5% in value during the last seven days.
For the past few days, the asset is consolidating at a narrow range and is not showing any signs of displaying the same kind of momentum it had towards the end of October when it surged to reclaim the $21K territory.
This time last year, BTC was trading with a value that is higher by more than 68% than its current price. It can be recalled that back in November 10, 2021, the king of all cryptocurrencies attained its all-time high of $69,044.
Today, it has lost 75.3% of that value and is projected to finish the year below the crucial $20k zone.
BTC total market cap at $326 billion on the weekend chart | Featured image - The Loadout, Chart: TradingView.com
Share this article: