Sunday, September 25, 2022

Bitcoin Miners Selling Their Holdings Amidst the Decline in the Crypto Market

Bitcoin miners are selling their cryptocurrency holdings due to falling prices of the largest cryptocurrency by market capitalization, Bitcoin, and a few other reasons. Miners’ sales on crypto exchanges have risen sharply since June 7. This is indicating miners raising funds by selling their crypto holdings.

A Reuters report quoted from Arcane Research’s analysis Told Listed bitcoin mining firms have been reported to have sold more than their entire output in May as the value of bitcoin declined by 45 percent. Arcane analyst Jaran Mellerud said: “Miners have been forced to sell more than 100 percent of their output in May because of declining profits. The situation worsened in June, which means they can sell more ” Bitcoin miners validate transactions on blockchains by running a network of computers that earns them tokens. These miners have large holdings of bitcoins.

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According to data from CoinMetrics, miners hold about 8 million bitcoins. The number of crypto miners also increased due to the rapid rise in the value of bitcoin last year. However, this has reduced margins. This is a negative sign for miners.” Miners have also been affected by rising energy costs. According to one estimate, the energy consumption of bitcoin miners exceeds the total consumption of the Philippines.

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There is also a protest in many countries about the damage to the environment due to excessive consumption of electricity in bitcoin mining. China banned bitcoin mining last year. There are restrictions on bitcoin mining in some other countries as well. Iran recently banned mining for three months due to a lack of electricity. In some countries like Russia, crypto mining is also being promoted. In India, the central government has made it clear that it will not allow tax deduction on equipment and other costs for crypto mining. Taxes have also been imposed on crypto transactions in the country.

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(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)

Cryptocurrency prices in Indian exchanges

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