Bitcoin miners in ‘selling mode,’ dumping $450M BTC in a day

Bitcoin miners sold more than 10,000 Bitcoin in a single day on Jan. 17, registering the largest daily decline in miner reserves in over a year.

According to data from on-chain analytics provider CryptoQuant, Bitcoin miner reserves declined by 10,233 BTC on Jan. 17, which is roughly $450 million at current prices.

Miners typically go through phases of accumulation and selling. According to a 2023 Bitfinex report, miners began accumulating Bitcoin around mid-2023 when prices and profitability were lower.

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

The data also shows that Bitcoin miner 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.

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Jan-18-2024 08:59:36 AM