According to Glassnode’s analysis of on-chain data, bitcoin miners’ wallet balances have dropped significantly to January 2022 levels.
According to Glassnode, the balance of bitcoin miners on wallets began 2022 at 1.82 million BTC and has now returned to its previous level.
“In 2022, the cumulative amount of bitcoin mined by miners has exceeded the volume sold, wiping out any increase in miners’ previous balances,” Glassnode said.
Miners amassed a large amount of bitcoin in July 2022, reaching a two-year high. However, the market plummeted following the crisis caused by the collapse of Terra (LUNA) and the bankruptcy of the FTX exchange. Many miners claim they have run out of funds to keep operating.
Many miners sold large amounts of BTC they had accumulated for money.
The hash rate has also begun to fall in recent weeks, indicating that miners’ interest is waning.
Change in bitcoin miners’ wallet balances has fallen to levels seen in early January, implying that if the sell-off continues, proof-of-work miners may face even worse outcomes in the future.
Due to rising energy costs and a sharp drop in bitcoin prices, 2022 will be a difficult year for proof-of-work mining. As a result, miners have been forced to sell large amounts of cryptocurrency.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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