Report shows that Bitcoin miners continue to sell
The events in the crypto industry for 2022 have not been favorable for Bitcoin miners. They have experienced a sharp decline in operations which drastically crashed their income. With several frustrating events in a row, the future seems to have grown thinner.
Throughout the crypto winter of May and June, BTC miners recorded losses and were unable to pay loans. A report on the miners’ net flow showed that the trend had been unpleasant. The new data for August marks the fourth consecutive month of negative flows for the miners.
According to the report from CryptoCompare’s Asset latest issue, April is the only month miners earned with BTC this year. The report noted that miners had been forced to start selling out in August to offset operating costs. It indicated that net outflows from the miners had reached 21.3k BTC.
August was unfavorable for Bitcoin miners
In August, the primary cryptocurrency managed to get its value to around the $24K level. Throughout the month, BTC experienced several reversals in price throughout the weeks. There were trade prices below and above $20,000.
Bitcoin also recorded an increase of around 5.28% in hash rate as it reached 212 million TH/s. Therefore, the BTC miners had to sell their holdings for sustainability.
Several Bitcoin mining companies have not found it easy in August. For example, Stronghold, a mining company that disclosed its deal with New York Digital Investment Group (NYDIG), a lender and broker. The firm is to return around 26,200 mining equipment to NYDIG to settle the debt of 67.4 million dollars.
The miners went through and maintained their position from some small uptrends of Bitcoin in recent months. As a result, they managed to accumulate some profit despite the many crises of the year that seemed to be deeply rooted without slowing down.
Miners revealed that they recorded more gains during the bullish trend of 2021. However, the declining bearish crypto market in 2022 wipes almost everything they had accumulated. They are left with few or no tokens to dispose of for the continuation.
Improvement in BTC network activity
Despite the decline in miners’ data, Bitcoin network activity is improving. CryptoCompare reported that BTC transaction volume reached $2.39 trillion through a 10.5% increase. In addition, the number of transactions reached 7.82 million, which shows an increase of 1.80%.
There is also a 4.47% increase in active addresses to 916k. The number of new addresses reached 395,000, showing an increase of 2.10%.
However, Bitcoin recorded a drop in its monthly transaction fees in August to 410 BTC, a decrease of 27.0%. Therefore, there is a decrease in the average transaction fees to 5,190 Satoshis by 28.2%.
Featured image from Pexels, chart from TradingView.com