Bitcoin price increase slows miners' activity

The rising price ofBTC has resulted in a slowdown in miners selling their BTC, as mining difficulty has seen back-to- back increases of 1% since the beginning of August, according to numbers from Glassnode.

After the Luna crash in May, miner liquidations started. The chart shows coin transfers from miner wallets to exchanges. Miners sold over 600 and 400 coins at the peak on two separate days, and only direct transfers are included.

The numbers show a decline in the number of coins sold to exchanges in recent weeks. The reduction corresponds to the recent upwards price change of Bitcoins, indicating decreasing stress on miners.

The winter market started after the Luna crash and has been giving miners a hard time since day one. As the price of the virtual currency fell to $20 K, all mining equipment older than 2019 lost profitability. With that, mining companies started to face financial problems. Compass Mining and Core Scientific are two examples of mining companies that had to sell most of their holdings or equipment to pay bills.

The recent Bitcoin price rally may relieve some of the miners' financial concerns, but the worst may be behind us from a mining perspective.

The chart shows that the 60 day and 30 day hash ribbons are inverted yet appear to be closing the gap due to decreased stress due to improving price levels.

It might change after difficulty could rise more than 0.6% on August 18 - the second increase since the beginning of the month.

The last time that mining difficulty had increased back to back in April 2022 was in April 2022, just before the Luna collapse caused the bear market.