Miners Forced to Sell 100% of Newly-Mined BTC to Cover Expenses

A pile of Bitcoin coins.

A recent report from Standard Chartered Bank examines the relationship between Bitcoin’s price and miner profitability.

According to the report, miners currently need to sell all of their newly-mined BTC to cover their expenses. However, if the price of Bitcoin reaches $50K, miners would only need to sell around 20-30% of their newly-mined BTC, resulting in a reduction in selling of approximately 250K BTC per year.

Based on this analysis, the authors predict that Bitcoin’s price could reach approximately $100K by the end of 2024. It’s important to note that forecasts are not always accurate and can be subject to error.

When miners face financial pressure due to low Bitcoin prices, they are compelled to sell more of their newly-mined BTC. This increased selling can push down the price of BTC. Conversely, as the price of BTC rises, miners can afford to sell fewer coins, reducing the supply available for sale and potentially alleviating downward pressure on its price.