Bloudmine

Cloud Mining

Cloud mining is the easiest and most effective way to make money from cryptocurrency mining without buying and maintaining your equipment.

Get access to real mining power without any extra effort

Blueprint

A perfect balance of exhilarating flexiblity and the effortless simplicity of the Code Supply Co. WordPress themes.

The ultimate publishing experience is here.

Research: Bitcoin held by miners sinks to 1 year lows; Poolin culpable

Bitcoin miners are facing a challenging time due to ongoing price uncertainty and global energy shortages.

In addition, macro factors have conspired to raise the cost of borrowing, while access to capital is also drying up as risk appetite dwindles in the face of recessionary pressures. This situation is particularly bad for publically traded miners, who typically borrow to fund the purchase of mining equipment.

What’s more, with the price of Bitcoin floating in and around two-year lows, profitability remains tight for all but the most efficient miners.

On-chain Glassnode data analyzed by CryptoSlate reveals, since August, the BTC held by miners has dropped significantly. However, it is unclear whether this was driven by the need to offload at exchanges.

Bitcoin held by miners

Glassnode’s Bitcoin: Balance in Miner Wallets metric identifies miners’ wallets and tracks the total BTC supply held in these addresses.

The chart below shows an uptrend in Bitcoin held by miners since the start of the year. This peaked at 1.86 million BTC around August, leading to a sharp drop-off, accelerating into a near-vertical drop since November.

Market dynamics have sunk the number of tokens held to approximately 1.81 million BTC at present, which equates to the same level seen around November 2021.

Bitcoin: Balance in Miner Wallets
Source: Glassnode.com

Miner Net Position Change

Miner Net Position Change looks at the flow of Bitcoin into and out of miners’ addresses. During times of stress, including depressed price action, in aggregate, miners tend to distribute their mining rewards, represented by outflows from the Net Position Change metric.

The chart below shows current ongoing uncertainty has resulted in significant outflows, from miners – dipping as low as around -20,000 BTC in recent weeks.

Bitcoin: Miner Net Position Change
Source: Glassnode.com

While the term “outflows” is sometimes associated with selling on exchanges, it should be noted that in the case of the Miner Net Position Change metric, tokens leaving miners’ wallets may also relate to moving to cold storage.

The chart below shows just 3,500 BTC were sent to exchanges from miners’ wallets over the past week. This would suggest the majority of the drop in Bitcoin held by miners was for reasons other than selling at an exchange.

Miners to exchanges
Source: Glassnode.com

Poolin culpable

In early September, mining pool Poolin announced liquidity issues and a pause on the withdrawal of mining rewards.

Pre-announcement, Poolin was one of the top mining pools, accounting for 12% of the network’s overall hashrate, and as high as 15% when the company was at its peak in 2020.

However, the liquidity crisis triggered an exodus of participating miners, leading to Poolin’s share of the hashrate plummeting to 4% at the time.

Revisiting this, Poolin’s hashrate currently accounts for 3% of the network. What’s more, in November, this fell as low as 1%, suggesting the company’s woes have not improved.

Estimated Poolin Hashrate Share
Source: Glassnode.com

Analysis of the Bitcoin held in Poolin wallets shows a sharp dip from early November when the balance was hovering around 22,000 BTC. Following a relatively stable balance over the next few weeks, another sharp drop occurred in late November, dropping the balance held to around 6,000 BTC.

The approximate 16,000 BTC drop off from Poolin addresses account for a significant chunk of the market’s overall decline in balances held by miners.

Bitcoin: Balancce in Miner Wallets - Poolin
Source: Glassnode.com

The post Research: Bitcoin held by miners sinks to 1 year lows; Poolin culpable appeared first on CryptoSlate.

This post was originally published on this site

Total
0
Shares
Leave a Reply

Your email address will not be published. Required fields are marked *

Prev
The Majilis approve new crypto regulation bill in Kazakhstan

The Majilis approve new crypto regulation bill in Kazakhstan

The Majilis have approved the new bill “On Digital Assets of the Republic of

Next
Kazakhstan Presses On With Restrictive Bitcoin Mining Regulation

Kazakhstan Presses On With Restrictive Bitcoin Mining Regulation

Kazakhstan is moving forward with regulation that will further stifle its

You May Also Like