tl;dr
Bitcoin miners are selling more coins than usual to cover costs as the cryptocurrency's price falls below $80,000. On April 7, miners sold 15,000 BTC, worth over $1.12 billion at the day's low price. Market volatility caused by President Trump's tariff announcements has created uncertainty. Mining p...
Bitcoin miners are selling more coins than usual due to significant price drops and rising operational costs, with notable outflows as prices fell below $80,000. On April 7, miners sold 15,000 BTC, valued at over $1.12 billion based on the day’s low price, marking the third-largest daily outflow this year.
Market volatility has surged, fueled largely by President Trump’s unpredictable tariff announcements, creating uncertainty among traders and impacting cryptocurrency prices. This turmoil has contributed to Bitcoin’s price struggles, which have seen the coin fail to surpass $90,000 despite previous highs near $109,000. Currently, Bitcoin trades around $83,800, reflecting a modest 1% increase over the past month and an almost 9% gain over the last week after dipping to about $75,000.
Mining profitability has taken a sharp hit as lower Bitcoin prices, subdued transaction fees, and a record-high network hash rate have squeezed miner operating margins from 53% in late January to just 33% today. These factors combine to increase the cost and difficulty of mining, forcing many miners to offload more coins to maintain operations.
Despite governmental support — including the approval of a national Bitcoin strategic reserve and the easing of regulatory pressures by the SEC — mining remains a challenging industry. At this year’s Mining Disrupt conference, miners echoed concerns that rising mining difficulty and operational costs will continue to strain the ecosystem. The situation underscores the precarious balance miners maintain to stay profitable in a volatile and evolving market.