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, the miners of the BTC network went through many challenges, including a shift in profitability. However, it appears that they are “hodling” again. The trajectory for the total supply held in miner addresses has been consistently upwards since the beginning of the year despite minor setbacks along the way, as per the data.
Previous 4-year high of 1,843,536.853 was observed on 26 July 2022
— glassnode alerts (@glassnodealerts) July 29, 2022
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 made in the month of May. Big players such as Core Scientific had to part with their BTC stash in order to survive the tepid 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 reported to be in a distribution phase, where fears of increasing selling pressure caused by the capitulation event could have pushed the price further down in the short term. The latest reversal seen in the trend could, however, prove 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 in mining a block of Bitcoin was also lowered by 5% to 27.67 trillion. As per BlockchainCom’s chart, network difficulty has continued to maintain its downward streak. Notably, this was the largest downward revision since the Chinese mining ban. There could be a silver lining here, as reduced difficulty adjustment could enable smaller miners a possibility to rake in rewards.