The number of coins in miners’ wallets continues to decline

According to Glassnode, the number of coins owned by miners has reached its lowest in 10 months.

Source: Glassnode

The main reason is the situation with the FTX exchange. In turn, miners do not want to incur even more losses and get rid of BTC reserves.

Within seven days, the first cryptocurrency lost 22% amid the collapse of FTX and the loss of investor confidence. Some analysts believe that the sell-off will not stop short. Thus, the situation for miners will become even worse due to high operating costs.

According to an October review from CryptoCompare:

The decline in miners’ revenues is caused by a combination of factors: the loss in value of BTC and the energy crisis. Companies that mine cryptocurrencies have to sell assets. The net outflow of funds reached a maximum of six months.

Charles Edwards, CEO of Capriole, agrees:

The cost of electricity has increased for the second time in five years. Today the size of the electricity bill is higher than the income. Because of this, many miners are simply shutting down their installations.