Home CryptocurrencyBitcoin Bitcoin miners in ‘sell mode’, dumping $450 million of BTC in one day

Bitcoin miners in ‘sell mode’, dumping $450 million of BTC in one day

by SuperiorInvest

Bitcoin (BTC) miners sold more than 10,000 Bitcoin in a single day on January 17, recording the largest daily drop in miners’ reserves in over a year.

According to data from on-chain analytics provider CryptoQuant, Bitcoin miners’ reserves decreased by 10,233 BTC on January 17, which is equivalent to approximately $450 million worth of Bitcoin.

Miners often go through accumulation and sale phases. According to a Bitfinex report last year, miners began accumulating Bitcoin in mid-2023, when prices and profitability were lower.

When prices and profitability increase, as in recent months, miners go into a selling phase. Historically, miners sell coins to replenish cash flow or capture higher prices in a rally. Bitcoin price has been in the range of $42,000 to $43,000 in recent days.

The data also shows that Bitcoin miners’ reserves are at their lowest levels since July 2021 at 1.83 million coins. However, this is still a substantial stash valued at approximately $78 billion.

Over the past 12 months, BTC miners’ reserves have decreased by 22,800 BTC, but the total reserves figure has remained relatively stable since the beginning of 2021.

On January 15, the Bitcoin Miners Position Index (MPI) began to rise, indicating that a potential sell-off was imminent, according to CryptoQuant.

The MPI is the ratio of total miner output (USD) to its one-year moving average of total miner output (USD).

Related: Bitcoin Halving in 2024: Miners Predict Potential Results of Reduced BTC Rewards

On January 14, Cointelegraph reported that Bitcoin mining companies Riot, TeraWulf, and CleanSpark were best positioned to handle the significant cost increases expected following the BTC halving event in April or May.

Additionally, average hash rates have fallen to their lowest levels since October, around 400 exahashes per second (EH/s), according to Bitinfocharts.

Meanwhile, several large mining facilities in Texas have recently shut down some of their operations to ensure power for the state amid extremely cold weather, as Cointelegraph reported.

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