- While the Bitcoin price maintains a stable trajectory around $42,500, it has been revealed that Bitcoin miners have been selling large amounts recently.
- According to data from CryptoQuant, miners have reportedly sold around 10,600 Bitcoins (BTC) in the last 24 hours, equivalent to an estimated value of $455.8 million.
- Bitcoin’s hash rate has hit its lowest levels in recent months, as miners powered down during extreme winter storms affecting the United States.
As the Bitcoin price continues to decline on Thursday, the selling activity of Bitcoin miners in the last 24 hours has attracted attention.
Bitcoin Miners Begin Selling Bitcoin
While the Bitcoin price maintains a stable trajectory around $42,500, it has been revealed that Bitcoin miners have been selling large amounts recently. One possible reason for this could be a sudden decrease in the BTC hash rate, which could impact miner profitability.
According to recent findings by Ali Martinez, there is a notable change in behavior among Bitcoin miners, indicating increased selling activity. According to data from CryptoQuant, miners have reportedly sold around 10,600 Bitcoins (BTC) in the last 24 hours, equivalent to an estimated value of $455.8 million. The increase in selling by BTC miners reflects a dynamic market response, signaling a significant move in the crypto landscape.
Bitcoin’s hash rate has hit its lowest levels in recent months as miners powered down during extreme winter storms affecting the United States. This move aims to ensure that hospitals have enough electricity to save lives and families can stay warm during severe weather conditions.
Bitcoin’s network hash rate has seen a notable decrease of 34% since last Friday. This decline from the peak (629 EH/s) to the bottom (414 EH/s) is attributed to electricity usage restrictions imposed on businesses due to severe cold weather conditions by ERCOT (Electric Reliability Council of Texas).
Bitcoin ETFs Absorbing Selling Pressure?
Despite the selling pressure from Bitcoin miners, the BTC price has managed to maintain a stable trajectory. One possible reason for this is strong buying alongside significant inflows into Bitcoin ETFs. Nearly $900 million flowed into Bitcoin ETFs in the first four days since their launch.
These substantial inflows into ETFs may lead to strong buying of Bitcoins in the open market. On the other hand, shares of Bitcoin mining companies have not performed well following a strong rally in 2023.
However, in the latest research reports published on Monday, Bernstein stated that any weakness in Bitcoin mining stocks presented a buying opportunity. Mining stocks face two challenges after the approval of spot Bitcoin exchange-traded funds (ETFs): a decrease in investor interest in using them as a proxy and the impact of a lower Bitcoin price contributing to additional performance, as mentioned in the report.
