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IntoTheBlock on-chain data vendor has reported that while miners have been selling massive amounts of BTC recently, large new Bitcoin addresses have been emerging as whales have been buying BTC on the dip.
"Miners struggling to break even"
IntoTheBlock has reported that since June 14, Bitcoin miners have gotten rid of a staggering BTC amount: 18,251 coins worth $372,035,684 at the current exchange rate.
As the world's leading crypto has managed to climb back to the $20,000 zone, they have begun to sell their coins quickly to cover their loans and other expenses that need financing urgently.
Miners are rushing to sell in order to cover expenses/loans.
— IntoTheBlock (@intotheblock) June 23, 2022
With the Hash Rate maintaining at historically high levels and $BTC hovering around $20k, miners are struggling to break even.
Miner reserves have dropped by 18,251 $BTC since June 14th.https://t.co/bol3akiImy pic.twitter.com/YcIOolpFNS
Earlier, U.Today covered that Bitcoin mining difficulty had witnessed a significant drop, falling 2.35% in the past two weeks.
This is the second large negative adjustment since this year began and the fifth adjustment of mining difficulty for Bitcoin this year overall. Mining difficulty tends to drop when the crypto market reverses downward. Miners are forced to switch off their gear as they cannot break even or make a profit any more.
Whales buying Bitcoin off miners
Santiment analytics company has reported that, this year, many large Bitcoin wallets have emerged. Over the past two weeks, a number of addresses holding 10–10,000 BTC appeared on the network, while Bitcoin was going down.
As for bigger ones, which store more than 10,000 Bitcoins, their amount has increased since February started.
🐳🦈 While markets have been suppressed, there has been an increase in the amount of larger #Bitcoin addresses popping up on the network. Addresses with 10 to 10k $BTC have surged on the drop 2 weeks ago, & 10k+ addresses have risen since February. https://t.co/A0KSYchZNW pic.twitter.com/h44uw5QjvK
— Santiment (@santimentfeed) June 22, 2022
Bitcoin recovers after another drop to $19,900
Earlier today, the biggest crypto by market capitalization value dropped to the $19,950 level. However, later on, it managed to climb back and stabilize for now around the $20,600 zone.
The price drop was likely caused by the aforementioned decline in Bitcoin mining difficulty and by the overall state of the market.