- According to a previous report, the Bitcoin network has experienced a significant increase in block size by 40-50% due to high network activity triggered by Bitcoin’s recent rally.
- Normally, an increase in block size tends to lead to higher transaction fees. However, despite the increase in block size, there has not been a significant increase in transaction fees.
- Bitcoin mining difficulty has risen to 81.73T, and the network hash rate has almost doubled from an average of 303 EH/s in the last 12 months to 577 EH/s.
According to recent analyses by the analytical firm, Bitcoin miners are selling their BTC assets following the approval of spot Bitcoin ETFs.
Bitcoin Miners Begin Selling Their Assets
Ki Young Ju, the founder and CEO of on-chain analytics platform Cryptoquant, revealed striking data showing a massive transfer to over-the-counter (OTC) desks by miners in the past three weeks following the approval of the latest Exchange Traded Fund (ETF). These large funds amounted to 700,000 Bitcoins (BTC), equivalent to $35.9 billion.
In the midst of this increase in trading activity, a noteworthy development is the increase in the Bitcoin block size. According to a previous report, the Bitcoin network has experienced a significant increase in block size by 40-50% due to high network activity triggered by Bitcoin’s recent rally.
Normally, an increase in block size tends to lead to higher transaction fees. However, despite the increase in block size, there has not been a significant increase in transaction fees, indicating that the increase is generally due to large volumes of BTC buying and selling.
Bitcoin mining difficulty has risen to 81.73T, and the network hash rate has almost doubled from an average of 303 EH/s in the last 12 months to 577 EH/s. This difficulty increase, combined with the increase in block size and the rise in BTC price, creates pressure for miners to sell their BTC holdings to cover operating costs and sustain profitability.
However, the influx of institutional interest following the approval of spot Bitcoin ETFs provides an opportunity for miners to leverage their significant BTC holdings by facilitating large-scale OTC transactions, providing liquidity and market access to institutional investors.
By doing so, miners can benefit from high transaction fees and potentially favorable price arrangements. This situation may explain the large OTC Bitcoin volume as indicated in the table shared by Young Ju.
Bitcoin Outlook and Market Trends
Despite concerns about miner selling pressure and its potential impact on the BTC price, spot Bitcoin ETFs continue to see extraordinary inflows, with the latest net inflow totaling $631 million. Experts believe that the Bitcoin price rally will be supported by demand from Bitcoin ETFs and derivatives traders.
As of the time of writing, Bitcoin is trading at $51,150, reflecting a 0.96% increase in the last 24 hours, with a market capitalization exceeding $1 trillion. Despite miner selling, experts have predicted bullish targets for BTC price, reaching up to $301,000.
