The miners are selling their bitcoins at a discount.
According to statistics from Glassnode, the holdings of miners have dramatically decreased, and this is the most significant decline since 2018 when compared to the previous year.
The Miner's Balance, a statistic that reflects the entire holdings of Bitcoin that are kept in wallets belonging to miners, was used to compile this information.
This measure monitors the activity of miners; an increase in this metric indicates that miners are moving bitcoin assets to their personal wallets when the indicator shows an increase. Miners may experience a buildup of cash as a result of this trend if it continues for an extended period of time, which has the potential to lead to a bull season.
A fall in this statistic, on the other hand, indicates that miners are selling and dumping their tokens or withdrawing their tokens from this reserve, both of which point to a gloomy season for the cryptocurrency market.
As a result of the FTX crash, which rocked the market and caused prices to decrease, Glassnode data revealed a large decline in the Bitcoin miners metric. This caused prices to drop significantly. Over 7,000 Bitcoins were taken out of circulation and dumped, which is equivalent to a 10% decline in comparison to the reserve from the previous week.
Metrics that are used to track the activities of miners
This data contained the net flow of this metric, which measures the total coins in possession as well as the total coins withdrawn from the miner's wallet. This metric measures both the total coins in possession and the total coins withdrawn from the miner's wallet.
The aforementioned tool reveals that miners are currently spending at a pace of 6,400 BTC per month, which is higher than any other time period in the preceding years.
In addition, in accordance with the conclusions of this data metric analysis, this is the most significant drop since the year 2018.
Miners have been under a lot of strain ever since the most recent crash, from the high expenses of energy to the maintenance of their machinery. Miners have even had to cut back on the purchasing of mining machinery because of the intense heat of this crypto winter. The current bear market has cut into the income of miners while also increasing the amount of energy that is consumed and required to mine.
As a result of the latest price decline, miners are being forced to liquidate their holdings in order to recoup losses sustained during the last market fall. The bitcoin market experienced a precipitous decline as a direct result of the dump of 7,000 BTC into the market.