News

Will Crypto Miners Sell Their BTC Holdings As Bitcoin Price Recovers?

Hash rate jumps all-time-high as crypto miners are running mining rigs at full capacity amid recovery in Bitcoin price.
Published by
Will Crypto Miners Sell Their BTC Holdings As Bitcoin Price Recovers?

Crypto miners are back on track after facing challenges including debt and high-energy prices for almost a year as Bitcoin price skyrockets almost 40% in January. Crypto mining firms are turned on their machines back to bring a necessary lifeline to their cash-strapped businesses. As a result, crypto mining stocks have on average jumped 100% this month.

Advertisement

Crypto Miners Seek Financial Recovery

Risks of crypto miner capitulation declined significantly amid the market recovery in January. Bitcoin price rallied over $23,500, recording a nearly 40% recovery from lows.

According to data from Hashrate Index, the average hashrate or the computing power directed towards mining bitcoin rose to a record 280 exahash on January 20 when Bitcoin price jumped over $23,500.

The rise in hashrate indicates an uptick in crypto mining activity. Thus, it signals a recovery in the crypto mining industry after facing challenges including debt and high-energy prices for almost a year.

On-chain data shows an increase in transactions and the creation of new blocks in the blockchain. Several crypto mining firms took the opportunity of the bear market to purchase mining rigs for low prices or buy new energy-efficient mining machines at discounts. However, one of the largest miners Core Scientific failed to withstand the pressure and filed for bankruptcy on December 21.

“The sentiment among miners is better than in a long time. For many bankruptcy threatened players, the sudden increase in the bitcoin price is a lifeline,” said Jaran Mellerud, an analyst at Hashrate Index.

Share prices of listed companies including Marathon Digital Holdings, which soared 171% this month, and Hut 8, which climbed 150%. Other such as HIVE Blockchain Technologies, Riot Platforms, and Bitfarms soared 122%, 80%, and 197%, respectively.

Also Read: Top Crypto Mining Stocks To Buy In 2023

Advertisement

Tech Giants To Rescue Crypto Miners?

Despite running mining rigs at full capacity, mining companies are still experiencing financial troubles due to reasons such as high-energy prices, taxes, and regulatory pressure.

CryptoQuant CEO Ki Young Ju hopes that TradeFi or tech giants acquire U.S. crypto mining firms at a discount this year.

Also Read: Popular Analyst Predicts Further Fall In Ethereum Price To This Level

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Price Analysis

Can Hype Price Hit $50 After Robinhood Listing?

HYPE, the native token of the decentralized exchange Hyperliquid, has witnessed a notable price surge…

October 24, 2025
  • News

XRP News: Ripple Unveils ‘Ripple Prime’ After Closing $1.25B Hidden Road Deal

In the latest XRP news, Ripple has introduced 'Ripple Prime,' which it plans to integrate…

October 24, 2025
  • News

Traders Price In Two More Fed Rate Cuts This Year After Soft Inflation Data

Traders are betting on the FOMC to make two more rate cuts this year following…

October 24, 2025
  • News

Crypto.com Joins Ripple in Banking License Bid Amid Industry Push for Market Structure Bill

Crypto.com has submitted an application with the U.S. National Trust Bank Charter. It aims to…

October 24, 2025
  • Bitcoin News

Breaking: U.S. CPI Comes In Lower Than Expectations, Bitcoin Rises

The U.S. CPI inflation data came in below expectations, increasing the odds of two more…

October 24, 2025
  • Uncategorized

Bitcoin Crash Incoming? Tom Lee Backs Peter Brandt’s 50% Decline Prediction Despite Strong ETF Inflows

BitMine’s Tom Lee and veteran trader Peter Brandt have both warned of a potential 50%…

October 24, 2025