Research: Miners sent 57K Bitcoin to exchanges in 2022; selling pressure decreasing

1 year ago

This twelvemonth hasn’t been benignant to Bitcoin miners arsenic the penetration of Ukraine successful February 2022 triggered a planetary vigor crisis, pushing mining costs done the roof.

In addition, the illness of Luna successful June tanked Bitcoin’s terms to a two-year low, wiping retired the small profitability miners had left.

After a challenging summertime with skyrocketing energy prices, miners welcomed wintertime scarred by the FTX fallout and adjacent much uncertain prices.

The 2022 situation deed some ample and tiny mining operations. Large, publicly-listed mining companies were the ones deed the worst, arsenic a hugely profitable 2021 led galore to instrumentality connected indebtedness and embark connected costly enlargement projects.

The conflict miners person been done isn’t anecdotal – on-chain information shows an incredibly stressful year, according to CryptoSlate’s analysis.

Miner gross per Exahash has been dropping sharply since the opening of the year. Revenue denominated successful USD has seen importantly much volatility, spelling occupation for those that decided to merchantability their BTC holdings.

Looking astatine hash ribbons further confirms this trend. The metric analyzes the 30-day moving mean and the 60-day moving mean of the Bitcoin hash complaint to find erstwhile miners capitulate. When the 30-day MA drops beneath the 60-day MA, capitulation begins arsenic Bitcoin becomes excessively costly to mine. When the inclination reverses, Bitcoin mining returns to being profitable.

Since the opening of the year, the marketplace has seen 3 instances of these moving averages crossing — successful June, July, and August. And now, the opening of December saw the 4th reversal of moving averages, indicating different capitulation has begun.

On-chain information intelligibly shows miners person been capitulating en masse passim the year. However, this doesn’t mean that they person been selling each their BTC.

Data analyzed by CryptoSlate shows that determination has really been a notable alteration successful the magnitude of BTC miners person been selling since the opening of the year.

Looking astatine the fig of outgoing transactions from miner wallets successful 2022 reveals a decreasing selling pressure. Outside of a short-lived spike successful outgoing transfers successful mid-November, the inclination has been steadily declining.

Transfers from miner wallets to exchanges further corroborate this trend.

Since the opening of the year, miner transfers to each exchanges person been decreasing. Miners sent a full of astir 57,000 BTC to exchanges successful 2022, with 18,500 going to Binance and astir 12,500 going to Coinbase.

Diving deeper into Bitcoin’s hash complaint reveals that the spot of the web hasn’t been compromised. The selling unit driven up by rising energy prices and skyrocketing hardware costs hasn’t affected the hash rate. In fact, Bitcoin’s hash complaint is presently climbing backmost to the yearly precocious it recorded successful mid-November — successful spite of Bitcoin’s dropping price.