Coinbase Says Bitcoin Miners Selling $19M Coins Daily Doesn't Matter

A report from Coinbase Global Inc COIN finds that even if all the newly issued Bitcoin BTC/USD was sold into the market every day, it would only equate to a minimal amount of selling pressure.  

What Happened: In a report published last week, research analysts at Coinbase analysts explained that the extent to which miners sell their BTC holdings naturally increases during cyclical turndowns.

“In times of market turmoil and a declining bitcoin price, margins compress across the board and naturally force more miners to become net sellers of their bitcoin, whether they are simply trying to weather the storm or shutting down their operations indefinitely,” stated the report.

See Also: Coinbase To Merge USD, USDC Order Books For 'Deeper Liquidity'

However, the analysts found that even if all Bitcoin miners sold their newly minted coins into the market, it would not have any real impact on price.

Such a scenario would only equate to 900 BTC, worth $19M at the current price, of daily sell pressure or 0.005% of bitcoin’s total market cap, said the analysts.

Coinbase noted that a number of Bitcoin miners have been “forced to rethink” their capital structure in 2022. These include large publicly traded mining firms like Marathon Digital Holdings Inc MARA, Riot Blockchain Inc RIOT Hut 8 Mining Corp HUT, and Core Scientific Inc CORZ.

“Unsurprisingly, many of these public mining companies have seen their share prices decline ~75-95% from their 2021 highs,” wrote the analysts.

Price Action: According to data from Benzinga Pro, at press time, Bitcoin was trading at $20,333 at press time, gaining 6% over the last 24 hours.

Read Next: Bitcoin, Ethereum, Dogecoin Rise: Is Crypto Finally Set For A Summer Relief Rally?

Photo via Yev_1234 on Shutterstock

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