Bitcoin holdings by miners hit 10-year low

As the crypto market develops, the influence of miners seems to be gradually weakening in the process. According to data provided by IntoTheBlock, the number of bitcoins held by miners has reached a 10-year low, and the entire miner community currently holds a total of 1.95 million bitcoins.

IntoTheBlock stated: "Cryptocurrency is developing and miners are playing a smaller and smaller role in it - the amount of BTC held by miners has reached a 10-year low - the Bitcoin hash rate is close to a record level - these pressures on miner profit margins have led miners to sell part of their assets to pay for operating expenses."

Why are miners selling?

Miners' sales are first related to the price trend of Bitcoin. Data from the Bitpush terminal shows that the current Bitcoin price has fallen by nearly 45% compared to its historical highest price.

During the bull run in the crypto market, the BTC balance held by miners increased. In 2019, when Bitcoin was trading at around $10,000, miners' holdings peaked. A report released by crypto exchange Kraken in October 2021 showed that the accumulation of large Bitcoin miners and whales caused a supply shock in the crypto market and drove a short-term rise in trading.

The intensification of the downward trend began in late November 2021, as miners sold their assets to cover expenses and increase hash rate by purchasing additional mining equipment.

In addition to the reduction in miners' Bitcoin balances, BTC's hash rate has also reached near-record levels, which also affects the difficulty of mining. In addition, profit margin pressure and regulatory restrictions have caused some miners to exit, such as China's crackdown on crypto mining in 2021.

Broader macro factors: A global shortage of semiconductor chips, growing competition and climate change are also forcing miners to sell their supply to ensure the stability of their operations.