The global digital asset market is dealing with the after effects of the massive collapse of FTX. As per reports, more than $100 billion vanished from the market in just a matter of days. However, its shockwaves have now reached the Bitcoin miners.
Bitcoin miners bal on a decline
Glassnode reported that the Bitcoin miner hash price has dropped to a new all time low. It now stands at $58.3K per Exahassh per day. BTC prices have dropped by more than 76% from the peak. BTC price drops have left the mining industry under immense pressure.
FTX collapse news which broke last week urged the Bitcoin miners to distribute additional BTC. As per the data, miners moved additional 8.25K Bitcoins to shore up their balance sheets. Now, the miners’ treasuries hold around 78K BTC. However, it has erased all balance growth in 2022.
Data depicts that Bitcoin miners are spending at a massive rate of 135% of the daily issued coins. This suggests that miners on aggregate distribute all 900 freshly minted BTC. Meanwhile, they are also distributing additional 315 BTC from their treasuries each day.
BTC price drops by 13%
Bitcoin prices have dropped by 13% in the last 30 days. BTC is trading at an average price of $16,765.17, at the press time. Its market capitalization has shrunk to $322 billion.
As per Glassnode, Miners have been forced to liquidate around 9.5% of their treasuries during the last week. They have spent 7.7k BTC. This has been recorded as the sharpest monthly miner decline since 2018. This demonstrates the pro-cyclical nature of Bitcoin miners.
Earlier, Coingape reported that institutional investors are selling Bitcoin holdings amid the FTX crisis. However, the world’s largest cryptocurrency fund, Grayscale Bitcoin Trust Fund (GBTC) is trading under negative premium of 40%.