The last month has brought capitulation from many angles – from over leveraged altcoin investors to Bitcoin miners. 

The graph below shows how much Bitcoin has been sent to exchanges from miners. Miners are feeling the pain and openly selling Bitcoin to cover operating costs in the midst of a down market as the 30-day average went upwards of $400 million.

For example, Cathedra Bitcoin sold 235 BTC or $8.8 million at an average price of $29,152. "We have spent the last several weeks restructuring our balance sheet and operations to ensure Cathedra is well positioned to endure a prolonged economic downtur,” Cathedra Chief Executive Officer AJ Scalia said in a statement.

Looking at other Miner Flows, Cathedra was not the only one that sold during this period. We also know that Riot sold both 200 BTC and 250 BTC in both March and May, respectively. 

Miners may begin to sell hodl'd Bitcoin into the open market. At the very least they are feeling the pain after the last major dip in price. Couple this with a downwards difficulty adjustment – indicating miners powering off – and it seems miners may be hitting a wall in profitability.

-Mitch Klee

Source: Coin Metrics

Disclaimer: This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any investment or to adopt any investment strategy. This information is for educational purposes only and is as of the date of that particular presentation. Compass does not guarantee profits from mining activity.