In 2022, public Bitcoin miners sold 100% of the BTC they mined, according to a tweet by Tom Dunleavy, a research analyst at Messari. This news has significant implications for the cryptocurrency market, as it suggests that the supply of new Bitcoins entering circulation is being fully absorbed by buyers.
BTC miners sell roughly 100% of the coins they mine
The 10 public bitcoin miners
detailed here mined ~40.7k BTC and sold ~40.3k in 2022This is a persistent headwind for BTC and for no other reason a good thesis to be bullish the ETHBTC ratio trade pic.twitter.com/L1iI6Z07p7
— Tom Dunleavy (@dunleavy89) December 26, 2022
The concept of mining is central to the operation of the Bitcoin network. Miners are responsible for verifying transactions on the network and adding them to the public ledger, known as the blockchain. In return for their efforts, miners are rewarded with a certain number of Bitcoins.
Historically, public miners have sold a portion of the Bitcoins they mine in order to cover their operational costs and generate profit. However, the fact that they are now selling all of the Bitcoins they mine indicates strong demand for the cryptocurrency.
There are a few potential reasons for this increase in demand. One possibility is that more individuals and institutions are recognizing the potential of Bitcoin as a store of value and investment asset, with reduced volatility.
Another factor to consider is the increasing mainstream adoption of Bitcoin. As more merchants and payment processors accept the cryptocurrency, it becomes more convenient for users to hold and spend Bitcoin. This could be driving demand for cryptocurrency, as people seek to acquire it for everyday use.
It’s worth noting that the information in the tweet by Tom should be treated with some caution, as it is based on a single data point and may not necessarily reflect the overall trend in the market.
Regardless of the specific reasons for the increase in demand, the fact that public Bitcoin miners are selling all of the BTC they mine is a positive development for the cryptocurrency market. It indicates that there is a healthy level of demand for the asset, and suggests that it is being widely accepted by a growing number of individuals and institutions.
As the adoption of Bitcoin continues to increase and more people become aware of its potential as a store of value and investment asset, it’s likely that demand for the cryptocurrency will continue to grow. This could lead to further price appreciation for Bitcoin, making it an attractive option for investors and users alike.
In conclusion, Bitcoin miners may choose to sell all or some of the BTC they mine in order to cover their costs and generate a profit. The decision to sell or hold onto BTC will depend on a variety of factors, including market conditions, the miner’s financial goals, and their individual risk tolerance.
