Core

Bitcoin

Read

<img width="1200" height="692" src="https://coingape.com/wp-content/uploads/2020/01/Bitcoin-BTC-Mining.png" class="attachment-full size-full wp-post-image" alt="Bitcoin Mining Difficulty Jumps Record High As Adoption Rises" decoding="async" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2020/01/Bitcoin-BTC-Mining.png 1200w, https://coingape.com/wp-content/uploads/2020/01/Bitcoin-BTC-Mining-300x173.png 300w, https://coingape.com/wp-content/uploads/2020/01/Bitcoin-BTC-Mining-768x443.png 768w, https://coingape.com/wp-content/uploads/2020/01/Bitcoin-BTC-Mining-1024x591.png 1024w" sizes="(max-width: 1200px) 100vw, 1200px">
As Bitcoin’s value <a href="https://coingape.com/category/news/bitcoin-news/">surges</a> to an 18-month high of $37,000, marking a stellar year-to-date climb of over 100%, top Bitcoin miners have made a striking move. Significantly, they sold 5,492 Bitcoin, cashing out around $164 million. This figure overshadows the amount they produced, clearly showing their sales strategy during the crypto rally. 
<h2 id="miner-s-strategic-sales-spike">Miner’s Strategic Sales Spike</h2> 
Miners like Marathon Digital Holdings and Core Scientific Inc., caught in the excitement of Bitcoin’s significant rally, opted for a strategic <a href="https://coingape.com/major-setback-bitcoin-miners-intel-ends-chip-support/">liquidation</a>. The MinerMag’s data reveals a liquidation-to-production ratio of 105% for October. Hence, miners did not just sell the month’s yield but also dipped into reserves. This approach marked a notable uptick from the previous quarter’s more conservative ratios of 64%, 77%, and 77%. 
Additionally, amid last year’s market crash and rising power costs, the ratio spiked to 390% in June, showcasing the volatile nature of crypto-economics. This October’s figures suggest miners are seizing the moment, cashing in on the rallying prices. 
<h2 id="strong-prepping-for-bitcoin-s-halving-strong">Prepping for Bitcoin’s Halving</h2> 
Moreover, this sales trend concerns more than capitalizing on a price surge. Miners are bracing for the upcoming halving event, a significant update to the Bitcoin code. Bitcoin’s halving is a quadrennial recalibration designed to maintain the token’s scarcity, capping the supply at 21 million.&nbsp; 
Furthermore, Bob Burnett, CEO of Barefoot Mining, predicts a 52.2% reduction in miner rewards post-halving. However, he remains <a href="https://coingape.com/btc-price-to-hit-50k-as-bitcoin-cme-open-interest-surpass-100k/">optimistic</a>, suggesting that increasing transaction fees could buoy the industry, with daily Bitcoin production potentially surpassing 900 BTC by 2027. Consequently, selling now is also a tactical move for miners to strengthen their financial buffer against the expected dip in mining income. 
Read Also: <a href="https://coingape.com/bitcoin-miners-sell-20000-btc-in-week/">Bitcoin Miners Sell Over 20,000 BTC In a Week, Is A Further Dip Coming?</a> 
The post <a rel="nofollow" href="https://coingape.com/bitcoin-miners-outsell-production-amid-18-month-high-price-surge/">Bitcoin Miners Outsell Production Amid 18-Month High Price Surge</a> appeared first on <a rel="nofollow" href="https://coingape.com">CoinGape</a>.

Bitcoin Miners Outsell Production Amid 18-Month High Price Surge

Table of Contents

Coingape News Media

Other articles published on Nov 9, 2023

JPEX Executives Arrested in Taiwan for Alleged Fraud After Investigations

FTX Continues Moving Solana to Exchanges Amid Price Manipulation Concerns

WisdomTree Reports Monthly Metrics for October 2023

CoinSpot Hot Wallet Hack Highlights Crypto Security Concerns

Polygon (MATIC) Jumps by 54% in Weeks, Here's Likely Reason

Bitcoin’s whale-sized moves hint at $37k ascent

Join our free newsletter for daily crypto updates!