Bitcoin miners are selling more BTC due to financial constraints, with a report from CryptoQuant indicating that 15,000 BTC were sold on April 7, 2023. Factors contributing to this include market volatility from President Trump’s tariff announcements, declining miner margins, and high mining costs. Bitcoin’s price struggles continue amidst these challenges, trading at about $83,800.
Bitcoin miners are experiencing financial strain as they are compelled to sell an increased amount of their holdings. According to a report by CryptoQuant, miners sold approximately 15,000 BTC on April 7, marking the third-largest daily outflow of the year. This sale was valued at around $1.12 billion, given the day’s low price of under $75,000.
Market volatility has intensified, largely attributed to inconsistent announcements regarding tariffs from President Trump, which has left traders in a state of uncertainty. Typically, miners are large-scale operations utilising specialised computers to process transactions and earn new Bitcoins. However, a decline in the Bitcoin price forces these miners to sell more coins to cover operational costs, which has been exacerbated by low transaction fees and increasing mining expenses.
CryptoQuant highlighted that miner margins have contracted from 53% in late January to just 33% currently. This downward trend occurs amid a peak in network hash rate, contributing to rising mining costs. Furthermore, Bitcoin is currently experiencing one of its least bullish phases since November 2022, struggling to maintain prices above $90,000 after having peaked at nearly $109,000 just prior to President Trump’s inauguration.
As per CoinGecko, Bitcoin’s trading value stands at approximately $83,800, reflecting a modest increase of 1% over the past month and a notable 9% upturn within the last week after reaching lows of nearly $75,000. Despite President Trump’s indications of support for the crypto sector and efforts such as the establishment of a national Bitcoin strategic reserve, challenges persist in the mining industry, as discussed during the Mining Disrupt conference.
