Bitcoin miners have been selling their Bitcoin (BTC) rapidly in recent weeks. Miners’ Bitcoin reserves have been steadily declining since the end of October. This emerges from data from the blockchain analysis company Glassnode. What does this mean for the Bitcoin price?
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The mining sector is doing good business
Since October, the price of Bitcoin has risen from around $30,000 to almost $45,000. During this boom, Bitcoin miners have continuously reduced their Bitcoin reserves. According to the very latest data from Glassnode, miners sold a total of 700 Bitcoins on Thursday, December 28th, worth a total of $129 million. This means the miners’ total Bitcoin reserves now amount to 12,700 BTC.
With the current high price, miners are clearly getting their money’s worth. Not only is the price of Bitcoin high, the current transaction costs are also very cheap for miners. The Ordinals hype is back and miners are benefiting from the sky-high transaction costs of the last few weeks.
So the Bitcoin mining sector is doing very well. This is reflected in the high prices of major industry players such as Marathon Digital (MARA) and Riot Platforms (RIOT). The two’s share prices rose 231 percent and 87 percent, respectively, in the past two months.
So miners are rubbing their hands and making nice profits, but in the short term this could put pressure on the BTC price. This is what crypto Twitter expert Ali calls the decline in miners’ Bitcoin reserves “considerably“, and he believes this could prevent further price increases.
In a remarkable step #Bitcoin Miners have sold over 3,000 #BTC approximately $129 million in the last 24 hours alone. This significant sell-off could affect the price $BTC. pic.twitter.com/mUl4ebDwpm
– Ali (@ali_charts) December 28, 2023
Bitcoin miners are preparing for the halving
The aggressive selling of Bitcoin by miners also appears to be related to another development in the mining sector last month. In December, Bitcoin miners invested more than in the entire rest of 2023.
It appears that miners are using the profits to expand their capacity and renew materials. This massive innovation has to do with the upcoming Bitcoin halving in April. After the halving, the Bitcoin mining industry will become significantly more competitive. Miners appear to be preparing for this battle with heavy investments. Read more about it here.
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