Bitcoin miners continue to struggle, with companies in the space selling more coins than usual to cope with financial problems.
In a report published on Tuesday, analytics firm CryptoQuant said miners increased their selling last week as the leading cryptocurrency fell below $80,000.
According to the company, miners sold a total of 15,000 BTC on April 7, marking the third-largest daily outflow this year. That's equivalent to at least $1.12 billion, based on the day's low of less than $75,000.
The sharp volatility in the market – both in stocks and cryptocurrencies – was largely due to President Trump's unpredictable statements on tariffs, leaving traders uncertain about their actions.
Miners are typically large industrial enterprises that use specialized computers to process transactions and generate new coins for the cryptocurrency network, and are rewarded for their work in the form of new bitcoins.
However, when the value of a coin drops, they may find it difficult to cover their costs and are forced to sell more coins to continue their operations.
“Miners’ profits are impacted by low prices, as well as low transaction fees and the Bitcoin network’s record-high hashrate, which implies higher mining costs, causing their average operating margin to decrease from 53% at the end of January to 33% today,” CryptoQuant reports.
The company added that Bitcoin is still in one of its worst phases since November 2022. Bitcoin hit a new record of nearly $109,000 per coin before President Trump's inauguration, but has since failed to rise above $90,000.
Bitcoin is currently trading at around $83,800, a modest increase of just 1% over the past 30 days, according to CoinGecko. However, it has gained nearly 9% over the past week after falling to nearly $75,000.
President Trump has promised to support the crypto industry, especially Bitcoin miners. And while the new president has approved the creation of a national Bitcoin strategic reserve and his SEC has dropped several high-profile lawsuits against crypto firms, mining remains a complicated business.
Miners attending this year's Mining Disrupt conference told Decrypt that the industry will continue to face challenges as mining difficulty and costs rise.
Edited by Andrew Hayward
Source: cryptonews.net
