According to data sites and a number of observers, bitcoin miners are selling coins faster than they can produce them. Ever since the market downturn on March 12 and the week of falling prices that followed, bitcoin miners have been struggling.
Also read: Bitcoin Hashrate Down 45% – Miners Witness Second-Largest Difficulty Drop in History
Miners Sell More Bitcoin Than They Generate
On March 26, news.Bitcoin.com reported on how miners witnessed 45% of the overall hashrate shaved since Feb. 29 and miners also dealt with the second largest difficulty drop in history. Now according data from the analytical crypto website bytetree.com’s generation vs. first spend chart shows that bitcoin miners are selling a lot more than they are generating. There’s been a big shift since 3-6 months ago, when miners looked as though they were hoarding in preparation for the upcoming reward halving. Those hoards saved six months ago maybe keeping mining operations afloat, while they sell fresh coinbase rewards today.
Question: Who on Earth is crazy enough to be selling #bitcoin now?
Answer: Miners.
Relax, they're making money and spreading bitcoin to the world. Soon they'll have half as much to sell each day.
4 years later, they'll have half as much again
— Arman The Parman (Bitcoin Moses) (@parman_the) March 25, 2020
Since then, however, statistics show that BTC prices jumped from $3,800 per coin to $6,700 on March 26. During more than 80% of that time period, miners sold way more coins than what they are producing at today’s issuance rate. Some bitcoiners think the shift is a “bullish” signal, while others think this belief is pure “hopium.”
