3 reasons why Bitcoin miners are selling BTC — and why it’s not capitulation

Aspects of this method were challenged by a selection of openly listed Bitcoin miners at last weeks Bitmain World Digital Mining Summit in Hong Kong.Bitmain WDMS panel on Bitcoin mining and sustainable energy. Our view is that we can actually create more worth by selling a Bitcoin today and earning that Bitcoin, plus some back in the future and weve got the expansion and the chance abilities to do that, or at some phase in the future potentially paying out a dividend, whether its money or Bitcoin. The only source of income that we have is the margins that we have by mining Bitcoin or raising incremental capital, and the capital markets we utilize to grow our services have bene tight the last couple of years, so for that reason, I think at least for the openly noted miners, looking at their Bitcoin selling strategies is not necessarily a direct sign of capitulation or distress, its more of how does that fit into where they sit today and where their growth plans are for tomorrow and how does that satisfy their capital needs.

According to the technique, Bitcoin miner rewards sent out to exchanges foreshadows pending sell pressure on Bitcoin price and perhaps shows distress amongst miners. I indicate our view of this is mining Bitcoin and operating data centers is a very different service model to investing in an asset like Bitcoin. Our view is that we can actually produce more value by offering a Bitcoin today and making that Bitcoin, plus some back in the future and weve got the opportunity and the growth abilities to do that, or at some stage in the future potentially paying out a dividend, whether its money or Bitcoin.”Related: Bitcoin miners double down on performance and renewable energy at the World Digital Mining SummitSo, are Bitcoin experts doing it all wrong?When questioned on the precision and approach of on-chain metrics like Charles Edwards hash ribbons indicator, Khan quipped: “I think that the service of being an expert is a very challenging one due to the fact that by definition youre most likely incorrect. The only source of earnings that we have is the margins that we have by mining Bitcoin or raising incremental capital, and the capital markets we use to grow our organizations have bene tight the last couple of years, so therefore, I think at least for the publicly noted miners, looking at their Bitcoin selling strategies is not always a direct indicator of capitulation or distress, its more of how does that fit into where they sit today and where their growth strategies are for tomorrow and how does that meet their capital requirements.