In June, Bitcoin miners sold roughly 400% of their production

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Bitcoin, the largest cryptocurrency in the world, is finding it tough to retain miners despite the recent price increase. For many operators, Bitcoin mining was a phenomenally profitable endeavor, with gross margins reaching as high as 90 percent at times.

Sadly, things have altered abruptly. First, Bitcoin's price has plummeted from its peak of $68k to its current value of $21k. And second, electricity prices have skyrocketed by 70 percent in some regions of the world, causing some industry analysts to estimate that mining a single Bitcoin can now cost as much as $25,000.

Not falling for it

Bitcoin miners withdrew a large quantity of bitcoin from their wallets, indicating that they may intend to sell them. This can be demonstrated by examining miners' reserves.

Here is a graphic depicting the trend in Bitcoin miners' reserves over the past few years:

Yesterday, a massive amount of 14,000 BTC was moved from miners (red line). Simultaneously, the Miner reserve (blue line) decreased drastically. At time of publication, the MPI rose to 7.45. (orange line). In contrast to Miner outflows, the Miners' Position Index (MPI) takes into account the average behavior of miners using a 365-day moving average.

Obviously, this metric indicated a significant increase. Following such extreme price increases, Bitcoin did decline for a time (or immediately in case of the spike in April).

The current condition of miners is also backed by the record decline in overall Miner revenue on Glassnode.

The given graph depicts a dire scenario, to put it mildly.

You made me do it

Such changes contributed to a degree of disarray among BTC mining companies and operators. In June, public miners sold over 14,600 Bitcoin, whereas this month they have only created 3,900 Bitcoin.

Core Scientific and Bitfarms sold the greatest quantity of Bitcoin. After not selling in May and June, Marathon and Hut 8 currently hold the most Bitcoin.

This visual depiction illuminated two different realities. Between January and April of this year, only 20 to 40 percent of Bitcoin production was sold by public miners. However, the method was successful until May, when Bitcoin's price dropped from $40,000 to $30,000.

The price decrease precipitated financial difficulties that compelled miners to sell off their valuable Bitcoin holdings. May was the first month in which they sold over one hundred percent of their output.

Consider the significant fall in electricity usage to further promote the migration and the slow output rate.

No, Bitcoin miners did not suddenly become aware of ESG problems. Instead, they shut down older and less productive mining equipment.

Currently, the estimated daily power consumption of the network is 9.40 gigawatts. This is a 33% decrease from the previous month, and a 40% decrease from February 2022's high demand of around 16 GW.

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