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Bitcoin miner revenues have been in decline since the bear trend began and this has led a good number of miners to sell their BTC holdings in order to keep their operations afloat. However, the expectation that the bear market would soon resolve and miners would once again be in the green has since gone out the window. With miner revenues continuing to plummet, miners may have to resume selling off their holdings to keep up with the market.
Miner Revenues Fall
For the past week, there has been no change in the downtrend in miner revenues. On-chain metrics show that it was down 0.59% from the prior seven days bringing the total daily miner revenues to $18.62 million. Mostly, it has remained flat during this time and other metrics have dived further into the red during this time.
Related Reading | Institutional Investors Remain Bearish As Short Bitcoin Sees Record Inflows
An example is the fees per day culled by miners. It was down 10.55% in the same time period, one of the highest declines recorded in this time period. With fees per day being so low, the percentage of the daily miner revenues which it makes up is also down, now sitting at 1.50%.
Additionally, the daily transaction volumes are also down, which explains the decline in fees per day realized. This was down 9.75%, although transactions per day had seen some growth. It rose 1.96% in the same time period and is now at 248,071 per day.
Average transaction volume has also followed the decline in network activity with an 11.46% decline. This now stands at $16,333.
Bitcoin Miners Selling Bitcoin?
Over the course of the last several months, miners have seen their cash flow plummet. These miners still have outstanding debts from machine orders that they had made during the bull market of 2021 but have not been profitable enough to keep their mining activities going. What had resulted from this was a sell-off among bitcoin miners.
Most prominent of these have been the sell-offs from top public bitcoin miners such as Marathon Digital and Riot Blockchain. In June, it was reported that these public miners had had to sell off more BTC than they had produced in the space of a month.
BTC close to test $21,000 | Source: BTCUSD on TradingView.com
Most recently, the news of another bitcoin miner dumping its holdings emerged. This time around, Core Scientific had announced that it had sold the majority of its BTC in a monthly update post. It realized a total of $167 million from the sale of 7,202 BTC. Following this, the miner’s bitcoin holdings now sit at 1,959 BTC.
Related Reading | SEC Still Against Spot-based Bitcoin ETFs. Is There A Light At The End Of The Tunnel?
This trend was expected as soon as the price had begun to drop. However, with no recovery in sight, it is expected that more miners will come forward to sell their BTC. What’s more, these are reports from public miners and there’s no way to tell how much BTC private miners have had to dump.
Featured image from BBC, charts from TradingView.com
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