In the latest development in the cryptocurrency market, top public crypto-mining entities such as Marathon Digital (NASDAQ:MARA) Holdings and Core Scientific Inc. have been selling more Bitcoin than they have generated. Data from TheMinerMag shows that in October, these entities' liquidation-to-production ratio stood at about 105%, a significant increase from the previous three months' ratios of 64%, 77%, and 77%.
This trend of increased sales comes in conjunction with Bitcoin reaching an 18-month high. Notably, prominent miners like Hut 8 sold more than their monthly production during this period. The surge in sales is often attributed to the energy-intensive process of mining, which prompts miners to sell more coins during price surges to restore cash flow or benefit from high prices.
In October, Bitcoin's price rose by 28% to approximately $35,000, yielding over 100% returns year-to-date. However, this is still below the late-2021 record near $69,000. In response to these market dynamics, mining companies like Marathon and Riot have seen their shares double in value this year.
Looking ahead, miners are taking steps to cushion the impact of the impending four-year halving event, which will halve mining rewards. They are raising capital through Bitcoin sales, a move that could potentially influence the market's dynamics further.
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