Amid the excitement surrounding the approval of bitcoin spot exchange-traded funds (ETFs), btc miners have been seen carrying out an aggressive selling spree leaving the community reflecting on the impact of the liquidation.
bitcoin miners engage in selling spree
Well-known cryptocurrency analyst Ali Martinez shared This information with the community on social network X (formerly Twitter), noting a “substantial increase in sales activity” from bitcoin miners lately.
According to data shared by Ali, miners have sold around 10,600 bitcoin in less than 24 hours. This was valued at an estimated $455.8 million at the time of reporting.
The recent surge in sales by bitcoin miners indicates a receptive market. Furthermore, the considerable amount involved means a shocking development in the cryptocurrency landscape.
Several reasons could be attributed to the massive sell-off of these miners. One possible reason could be attributed to the decreasing bitcoin hash rate, which generally affects the profitability of miners.
btc miners must make several guesses on a challenging mathematical problem in order to process transactions. A higher hash rate indicates that miners are making more guesses, suggesting greater effort to secure the network.
The crypto assets hash rate experienced a notable 25% decline over the past weekend. This raises speculation about the security of the btc network ahead of the long-awaited “halving.”
Was bitcoin” target=”_blank” rel=”nofollow”>reported that the total real-time rate of all mining pools decreased from 570 exahashes per second (EH/s) to just 425 EH/s. However, the hash rate currently stands at 550 exahashes per second (EH/s).
The reduction occurred due to restrictions. put on business electricity use by ERCOT (Electric Reliability Council of Texas) due to unfavorable cold weather.
Institutional interest in btc mining
Major financial companies have been showing interest in bitcoin mining companies for a while now. Several financial institutions have made significant investments, which have also helped the mining industries.
Even those who have historically opposed or been hostile to bitcoin have invested millions of dollars in the industry throughout 2023.
From August 2023, Black Rock has been a major shareholder in four of the five largest mining companies. The asset manager increased its level of involvement with these companies only during the second half of last year.
At the time of writing, bitcoin was trading at $42,710, indicating a decline of over 7% in the last seven days. Its market capitalization increased slightly by 0.02% in the last 24 hours, while its trading volume decreased by 17.17%.
Featured image from iStock, chart from Tradingview.com
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