Bitcoin miners’ balance has reached a four-year high. According to Glassnode’s latest data, the figures have surpassed 1,845,303 BTC.
Bitcoin Miners Hodling Again
From the Great Chinese Migration in 2021 to the ongoing bear market, miners on the BTC network have gone through many challenges, including a shift in profitability. However, it looks like they’re ‘hodling’ again. The trajectory of total supply held in miner addresses has been steadily upward since the start of the year despite minor setbacks along the way, according to the Data.
The massive price declines prompted miners to dispose of their assets to minimize potential losses. After years of accumulation, these network participants had sold off a significant portion of their holdings.
In fact, a handful of institutional miners even sold more BTC than they earned in the month of May. Big players such as Core Scientific have had to part with their BTC stock in order to survive the lukewarm market conditions.
As a knock-on effect, the prices of ASICs also took a hit. The unprofitability of Bitcoin mining drove many miners to sell their mining hardware at a discount.
During this time, the miners were in a distribution phase, where fears of increasing selling pressure caused by the capitulation event could have driven the price further down in the short term. The latest reversal seen in the trend, however, could turn out to be bullish for Bitcoin.
Over Network Health
Despite modest gains over the week, Bitcoin’s hash rate has suffered a decent hit and was found near 207 million Th/s. It was down by over 17% from the recent all-time high.
The difficulty to mine a Bitcoin block was also reduced by 5% to 27.67 trillion. According to the BlockchainCom chart, the network difficulty continued to maintain its downward trend. This is notably the largest downward revision since China’s mining ban. There could be a silver lining here, as a reduced difficulty adjustment could allow smaller miners to reap rewards.
