Bitcoin miners, the people that are in control of the hardware that makes bitcoin network operate efficiently, are behaving in a different way than in other positive runs of the market. This according to an article published by Bloomberg that shows that most miners are selling more than what they are producing.
Bitcoin, as a currency based on blockchain technology, must a maintain a record of every transaction made simultaneously in a node which stores all the changes made. This is the process known as mining. But mining is not free, it needs of specialized hardware and uses lots of energy to achieve important aspects of bitcoin: redundancy and bank independence.
Depending on each country mining this could be a profitable or not so profitable inversion; that is why China is such a good place to start a mining startup, due to the very cheap prices of electricity. But with this negative run that the market had for so long, miners were just waiting for a breather to sell.
According to data from the site Cryptocomposite.com, an analytics site, more coins are being sold from miners than what they are producing daily: this means that they have been profiting from this sudden hike that has taken bitcoin to over 8,000 levels. This is important because it could summarize the sentiment and expectations of miners, that are trying to capitalize because they don’t believe that this positive run can last much longer.
Prior to the price hike, heavy miners were selling less than what they producing, stockpiling the excess or cryptocurrency mined waiting for a more favorable opportunity. Apart from this, it could also mean that miners margins were stretched too thin and they are now starting to see profitability and need to pay debts. Charlie Morris, the president of Cryptocomposite.com declared:
“I’d expect that at these relatively low price levels, miners are selling off all of their new takings — they can’t afford not to,”