The cryptocurrency world is in shambles at the moment and Bitcoin miners are forced to reach deeper into their stockpiled tokens in an attempt to cover increasing costs. This was revealed in a recent report by influential financial outlet Bloomberg.
Compiling the data from Coin Metrics, Compass Mining found that Bitcoin miners transferred 195,663 tokens to exchanges in May alone. This marks the biggest monthly increase since January. The total value of the transferred coins is $6.3 billion taking into consideration that Bitcoin hovered around $32,000 last month.
The increased transfer of coins to exchanges indicates that miners are more open to selling their token reserves despite slumping prices. The most obvious reasons are the rising costs of mining operations and shrinking profit margins.
Many miners, including publicly traded companies, were previously more than ready to hold onto their tokens in hopes that the crypto would bounce back at one point. However, that now doesn’t seem like a viable outcome, at least not anytime soon. As a result, the miners are selling coins to keep their operations running.
“I think miners are just talking about the macro environment and think it is probably prudent to sell Bitcoin in these levels in order to keep the operations safe,” Compass Mining’s director of content Will Foxley explains.