This year has not been kind to Bitcoin miners, as the invasion of Ukraine in February 2022 triggered a global energy crisis, sending mining costs through the roof.

Furthermore, the Luna crash in June plunged the price of Bitcoin to a two-year low, wiping out what little profitability miners had left.

After a challenging summer with sky-high electricity prices, miners welcomed the winter marked by FTX fallout and even more uncertain prices.

The 2022 crisis affected both large and small mining operations. Large publicly traded mining companies were hardest hit, as a hugely profitable 2021 led many to go into debt and embark on expensive expansion projects.

The struggle miners have been through is not anecdotal: on-chain data shows an incredibly stressful year, according to CryptoSlate analysis.

Miners’ revenues for Exahash have declined dramatically since the beginning of the year. USD-denominated revenue has seen significantly higher volatility, spelling trouble for those who decided to sell their BTC holdings.

Chart showing miner revenue per Exahash (Source: Glassnode)

Looking at the hash tapes further confirms this trend. The metric looks at the 30-day moving average and 60-day moving average of Bitcoin hash rate to determine when miners capitulate. When the 30-day SMA falls below the 60-day SMA, capitulation begins as Bitcoin becomes too expensive to mine. When the trend reverses, Bitcoin mining becomes profitable again.

Since the beginning of the year, the market has seen three cases of crossing these moving averages: in June, July and August. And now, the beginning of December saw the fourth reversal of the moving averages, indicating that another capitulation has begun.

Chart showing Bitcoin hash tapes in 2022 (Source: Glassnode)

On-chain data clearly shows that miners have capitulated en masse all year long. However, this does not mean that they have been selling all of their BTC.

Data analyzed by CryptoSlate shows that there has actually been a noticeable decline in the number of BTC miners that have been selling since the beginning of the year.

Looking at the number of outgoing transactions from miners’ wallets in 2022 reveals diminishing selling pressure. Aside from a short-lived spike in outbound transfers in mid-November, the trend has been steadily declining.

Graph showing the number of outgoing transfers from miners’ wallets in 2022 (Source: Glassnode)

Transfers from miners’ wallets to exchanges further confirm this trend.

Since the beginning of the year, miner transfers to all exchanges have been declining. Miners sent a total of around 57,000 BTC to exchanges in 2022, of which 18,500 went to Binance and around 12,500 to Coinbase.

Chart showing wallet transfers from miners to exchanges in 2022 (Source: Glassnode)

Digging deeper into Bitcoin’s hash rate reveals that the strength of the network has not been compromised. Selling pressure fueled by rising electricity prices and skyrocketing hardware costs hasn’t affected the hash rate. In fact, the Bitcoin hash rate is currently returning to the yearly high it recorded in mid-November, despite the Bitcoin price crash.

Chart showing Bitcoin price and hash rate in 2022 (Source: Glassnode)

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This post Miners sent 57K Bitcoin to exchanges in 2022; Decreased selling pressure

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