Atypical trading patterns from Bitcoin miners indicate they are expecting the price rally to soon come to an end.
While it is not uncommon for miners to sell off a portion of newly-gained coins to cover operating costs, the extent of their sales suggests they are looking to sell before their work becomes less profitable. Reports indicate that in the month of June and the majority of July, the average miner was, in fact, working at a financial loss.
What is particularly unusual about the sales from miners is that the last 24 hours have seen them sell more Bitcoin than they created. They reportedly mined an aggregate of approximately USD 14.4 million in coins, selling a total of USD 17.3 million. Recent trends from the miners show that they have tended sell around the USD 10 million mark of their holdings, averaging less than their daily earnings.
An end to the rally, or just covering costs?
Alternatively, if miners are not expecting an end to Bitcoin’s rally, perhaps the last few unprofitable months have required immediate sales to cover the growing overhead.
Kyle Samani, a managing partner at Multicoin Capital Management weighed in on the subject, speculating that it was likely many miners are currently no longer waiting for a price appreciation to sell, although he did not share any particular reason as to why this might be.
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