Bitcoin Miners Offload Over $450M in BTC, Hit Lowest Reserves Since July 2021
Summary:
Bitcoin miners sold over 10,000 BTC on January 17th, marking the biggest single-day decrease in mining reserves in over a year. Data from CryptoQuant indicates miner reserves dipped by 10,233 BTC, equal to around $450 million, indicating a sell phase. Notably, Bitcoin miner reserves are at their lowest since July 2021. Despite this, miners still hold a substantial stash of BTC, valued at approximately $78 billion.
Bitcoin miners offloaded over 10,000 BTC in a one-day transaction on January 17th, setting a record as the biggest single-day reduction in mining reserves in over a year. The information, provided by on-chain data expert, CryptoQuant, indicates that the Bitcoin reserves with miners fell by 10,233 BTC on that day, a worth estimated to be close to $450 million.
Periods of accumulation and selling are usual for miners. As observed from a 2023 Bitfinex report, accumulation of Bitcoin by miners started around the mid of the year when market prices and profitability were low. However, when there's a general increase in prices like we've recently seen, miners tend to sell. This selling action is typically to ensure adequate cash flow and to take advantage of surge prices. The current price of Bitcoin oscillates between $42,000 and $43,000 range, over the previous days.
Data available shows that there's a drastic decline in Bitcoin miner reserves to its lowest since July 2021, at 1.83 million coins. Despite this, it's worth pointing out that this still stands as a substantial number worth about $78 billion. Recent data by @cryptoquant_com shows that Bitcoin miners have remarkably increased selling activities with nearly 10,600 BTC, approximately valued at $455.8 million, sold in the last 24 hours.
BTC miner reserves have declined to 22,800 BTC over one year, but managed to remain relatively stable since early 2021. Starting from January 15th, the Bitcoin Miners' Position Index (MPI) subtly began a gradual increase, hinting at a potential sell-off, as noted by CryptoQuant. The MPI represents the ratio of the total miner outflow in dollars versus its one-year average miner outflow.
On January 14th, it was reported that Riot, TeraWulf, and CleanSpark, all Bitcoin mining companies, are in the most favorable position to manage the anticipated cost inflations following the Bitcoin halving event scheduled for April or May. In addition, average hash rates are currently the lowest since October, at about 400 exahashes per second (EH/s), as reported by Bitinfocharts.
Furthermore, multiple large Texas-based mining facilities recently scaled down operations in response to the state's critical cold weather, to save energy.
Published At
1/18/2024 7:49:02 AM
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