BitcoinBTCIndustry AnalysisLINKNewsPrice Prediction

Bitcoin: As BTC miners sell big, should you be worried

1 Mins read

  • Miner to exchange flows surged dramatically in recent days.
  • Increased revenue prompted miners to liquidate their stashes.

Bitcoin [BTC] miners sent a large proportion of their stashes to crypto exchanges recently, triggering anxieties among market participants.

According to AMBCrypto’s analysis of CryptoQuant data, the 7-day moving average of miner to exchange flows jumped to its highest value in five months on the 1st of January.

Source: CryptoQuant

Are miners locking in gains?

Miners, as we all know, frequently liquidate their holdings to cover costs incurred in setting up mining infrastructure. However, such events end up exerting significant downward pressure on the price of Bitcoin. This is because miners are one of the largest holders of the asset.

A CryptoQuant analyst drew attention to previous such instances. A sharp increase in miners’ deposit to exchanges in May 2023 triggered a significant price drop.

In fact, a similar drop in the value of BTC was witnessed after the recent transfer of coins from miners to exchanges.

“We need to keep an eye on whether this surge in miner deposits is temporary or sustained for wise investment,” the analyst who goes by the pseudonym SignalQuant noted. 

The jump in sell-offs follows a profitable last month for miners in 2023, during which transaction fees skyrocketed.

Indeed, miners racked up more than $23.7 million in transaction fees on the 16th of December, as Ordinals frenzy pushed demand for blockspace.

Source: CryptoQuant

The steep rise in fee revenue boosted miners’ earnings to levels not seen since the peak bull market of 2021. After a prolonged and punishing bear market, miners couldn’t have hoped for anything better.

Such profits, therefore, justified miners liquidating their holdings.

Source: CryptoQuant


Read BTC’s Price Prediction 2023-24


Miners see high returns on hashing power

Bitcoin started 2024 on a strong note, bouncing above $45,000 with conviction, AMBCrypto detected using CoinMarketCap’s data. The king coin was exchanging hands at $45,311 at press time.

Apart from transaction fees, the market value of Bitcoin also impacts miners’ profitability. The hashprice soared to $102 per PetaHashes per day (PH/Day) on the 1st of January, indicating significant spike in earnings relative to hashing power committed.

Source: Hash Rate Index

Source

1409 posts

About author
Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
Articles
Related posts
CryptoNews

Indonesia's presidential elections pose uncertainty for the thriving cryptocurrency industry

1 Mins read
Indonesia, has emerged as a formidable player in the global cryptocurrency space in recent years. However, the nation’s upcoming general elections in…
BNBCryptoNews

Understanding the Cryptocurrency Boom - Dogecoin Climbs Due to X Payment Integration, While Stellar and BNB Also Experience Growth

1 Mins read
The cryptocurrency market has been experiencing notable gains over the past few days. This is led by an unexpected and surprising spike…
CryptoNews

Crypto Entrepreneur Charged with Defrauding Investors Out Of $150 Million Through Marketing Scheme

1 Mins read
Federal prosecutors have charged a German businessman with securities fraud, wire fraud and money laundering for allegedly scamming over 150 investors out…

🚀 Ailtra Crypto Bot Earned $8.9M Million in 7 Months with 0% Loss!

🚀 Ailtra generated $7.4 in 7 months only!

Unlock 20-75% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st March an AI Crypto Bot boasting 20%-75% monthly gains and $7.5M earnings in 7 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,000 spots are available in first phase – claim yours fast! 🔥

Ailtra.ai will not disclose your account information to any 3rd parties.