Bitcoin Miners Sell More BTC to Make Ends Meet: CryptoQuant

Bitcoin miners continue to face a crisis, with businesses in the field selling more coins than usual to make ends meet.

Analytics firm CryptoQuant said in a report on Tuesday that miners increased their selling last week as the price of the largest cryptocurrency fell below $80,000.

The company noted that miners sold a total of 15,000 BTC on April 7, the third-largest daily outflow this year. That amounts to at least $1.12 billion, based on the day’s low price, which was below $75,000.

Increased volatility in the market – both in the stock and cryptocurrency sectors – was largely due to President Trump's unpredictable tariff statements, leaving traders uncertain about their actions.

Miners are typically large industrial companies made up of specialized computers that process transactions and create new coins for the cryptocurrency network, and are rewarded with new bitcoins for their work.

However, when the price of a coin drops, they may find it difficult to cover their expenses and are forced to sell more coins to support their operations.

“Miners’ margins have been negatively impacted by low prices, as well as low transaction fees and the Bitcoin network’s record-high hashrate, which means higher mining costs, causing their average operating margin to drop from 53% at the end of January to 33% today,” CryptoQuant reports.

The company added that Bitcoin is still in one of its least bullish phases since November 2022. Bitcoin reached a new peak of nearly $109,000 per coin before President Trump's inauguration, but has since failed to rise above $90,000.

Bitcoin is currently trading at nearly $83,800, a modest gain of just 1% over the past 30 days, according to CoinGecko data. However, it has increased nearly 9% over the past week after falling to nearly $75,000.

President Trump has pledged to support the crypto industry, especially Bitcoin miners. Although the new leader has approved the creation of a national Bitcoin strategic reserve and his SEC has dropped several high-profile lawsuits against crypto firms, the mining business remains challenging.

Miners attending this year's Mining Disrupt conference told Decrypt that the industry will continue to face challenges as mining difficulty and costs rise.

Edited by Andrew Hayward

Source: cryptonews.net