Bitcoin miners’ reserves have decreased significantly over the past months. This reduction in reserves is attributed to the unfavorable market conditions that have plagued the digital currency industry for some time.
To Report ZCrypto, according to data from the analytical platform IntoTheBlock, miners currently hold a total of 1.91 million Bitcoin units, which is the lowest level since 2010.
Bitcoin miners had more than 2 million units of inventory until May this year, and since then, the inventory of miners of this digital currency has never returned to a higher level. As the market conditions worsened in the middle of June (June), miners started selling more than their mining amount every month.
Miners experienced similar conditions last year following the ban on digital currency mining in China; But a little later, with the migration of some Chinese miners to other countries and the return of stability to the market, their inventory increased again.
As can be seen from on-chain data, the digital currency market has been hit hard so far, and currently 51% of the Bitcoin supply (coins in circulation) is in the red; It means they were bought at a lower price than the current prices. The fall in the value of Bitcoin and the resulting decrease in the profitability of mining caused some of the miners to sell part of their reserves in order to earn money and compensate for their expenses.
The fall in the value of digital currencies puts pressure on both small miners and large mining companies. Companies such as CleanSpark and Argo, which each received $35 million and $97 million in equipment-backed loans, respectively, have been making losses for the past few months. Last month Compass Mining stopped its mining activities in Georgia and Poolin suspended its user withdrawals. The mining company Iris Energy recently had to sell $100 million of its shares to raise capital. Finally, the American company Compute North (Compute North) also declared bankruptcy.
Experts say that with the continuation of this recession, farms that are more efficient in terms of energy consumption will continue to have a better situation. However, the main problem for miners is still the poor performance of Bitcoin and the market’s inability to recover prices.