Broader economic concerns, including recession fears and stubborn inflation, have rattled the crypto market, leading to a sharp downturn. Bitcoin has struggled under these conditions, which, in turn, has forced miners to sell more BTC to sustain operations.
As a result, increased selling pressure from miners has compounded market instability.
Miners Offload BTC to Cover Costs
According to CryptoQuant’s latest report , there has been a significant rise in miner-to-exchange transfers when Bitcoin briefly dropped to $77,000 on Monday, which indicated heightened selling pressure. Historically, miners tend to offload BTC during declines to cover operational costs, often intensifying downward momentum.
If this trend continues, it could hinder Bitcoin’s price recovery unless met with strong buyer demand. The report states that miners act as forced sellers and directly impact market liquidity. Their increased selling at local bottoms suggests financial strain, potentially due to rising operational expenses.
If buyers absorb the supply, Bitcoin may stabilize. However, continued selling pressure from miners could lead to further declines. Market participants are closely watching whether demand will counterbalance the increased miner offloading.
While overall miner selling has increased, it doesn’t necessarily mean all miners are struggling. Some miners – especially those using newer, more efficient rigs – are still making solid profits.
Certain Rigs Still Profitable Despite Price Drop
Bitcoin mining difficulty has increased by 3% in the past two weeks, while Bitcoin’s price has dropped more than 11%, which briefly pushed its hash price to $0.045/Th/Day – its lowest level since November. Despite these headwinds, the latest-generation mining machines remain profitable, even those with energy efficiencies above 20 W/T, such as the S19K Pro and S19 XP.
According to Blockware Intelligence’s latest update , some miners with newer models, like the S21, may even benefit from further short-term price declines if weaker machines unplug, reducing mining difficulty. Historical data reveals miner profitability, with the Antminer S21 Pro, purchased in August 2024 for $5,700, already generating more than 20% of its cost.
With daily net profits of $5-$6, Blockware estimated that these miners are on track for a 35% APY and a full return on investment by Q2 2027.
