According to Julio Moreno, head of research at cryptocurrency analytics firm CryptoQuant, has noted that bigger miners are currently in accumulation mode.
Meanwhile, smaller miners have been on a selling spree since the last halving event that took place back in April.
Tomiwabold OlajideAs noted by Moreno, this "makes sense" since major publicly traded mining companies have reported higher reserves. Meanwhile, some of these companies are even buying Bitcoin.
As reported by U.Today, cryptocurrency mining giant Marathon Digital recently acquired $100 million worth of BTC while embracing a "full HODL" strategy. The company intends to hold the coins that it produces while also making additional purchases.
Bitcoin miners had to adapt to the post-halving environment. Earlier this month, the Financial Times reported that some Bitcoin miners are also pivoting to artificial intelligence due to declining profitability. Core Scientific is among the prominent mining companies that are currently seeking AI deals.
However, despite the challenges that the mining sector is currently facing, Bitcoin's seven-day hashrate average recently hit a new all-time high of 677 EH/s.
Bitcoin's rising prices helped to cushion the blow from the block reward reduction. As reported by U.Today, there has been a major spike in miner profitability due to the ongoing bullish trend. Recently, the cryptocurrency came close to reclaiming the $70,000 level once again.
At press time, Bitcoin is trading at $66,572. The Bitcoin price recently came under renewed selling pressure due to recent transfers made by the U.S. government. However, analysts believe that the US is unlikely to liquidate these coins in the near future since they were likely transferred for custody purposes.
Godfrey Benjamin
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