It looks like the bearish market is hitting all sectors of the cryptocurrency space. Including those that are charged with the responsibility of validating transactions and maintaining the network integrity of the Bitcoin network.
Bitcoin miners are selling off their mined tokens as the tumbling price of bitcoin erases profit margins for these miners. This comes at a time when capital markets are becoming less friendly with major indexes officially entering a bear market. Having lost 20% or more this year.
What you should know
Mining bitcoin has become less profitable as the price of the crypto has trended downwards since the start of the year. With popular mining machines like Bitmain’s Antminer S9 becoming money losers at electricity prices of six cents per kilowatt-hour.
Argo Blockchain (ARBK) plans to raise debt and sell some of its bitcoin to cover expenses. The company said in an analyst call for its first-quarter results.
Core Scientific (CORZ), the world’s largest miner by hashrate, has already sold some of its mined bitcoin this year. Previously, a confirmed HODLer, Riot Blockchain (RIOT) sold nearly half of its mined bitcoin in April. After having also sold a sizable amount in March.
Cathedra Bitcoin said it sold 235 bitcoins in a move to raise liquidity and “insulate” itself from further price declines.
There’s also Marathon Digital (MARA), which suggested it may sell some of its bitcoin.
With many prominent Bitcoin miners selling their positions, it means that there will be more selling pressure in the market which casts a dark shadow over the market in the coming weeks. BTC, which at the start of the week was steadfast towards $32,000 has now made a U-turn, as it trades below $30,000 trading zone again.
-Nairametrics.