Bitcoin Miners Cash Out $485M, Warning Sign or Just Profit-Taking?

Bitcoin has reclaimed the $112,000 level after hitting a six-week low, but market sentiment remains shaky as data shows miners are selling at the fastest pace in nine months.

Bitcoin Miners Cash Out $485m, Warning Sign Or Just Profit Taking

According to Glassnode, between August 11 and August 23, miner wallets offloaded 4,207 BTC worth roughly $485 million. This marked a consistent period of net outflows, contrasting with Q2 when miners added 6,675 BTC to their reserves. Their current balance stands at about 63,736 BTC, valued at more than $7.1 billion.

Although these sales are far smaller than allocations made by giants like MicroStrategy, the moves have fueled market concerns. The main issue lies in shrinking miner margins. HashRateIndex data shows that while Bitcoin’s price has risen 18% over the past nine months, miner profitability has actually dropped 10%. Rising mining difficulty and weaker on-chain transaction demand have been squeezing margins.

Bitcoin Miners’ 5 Day Average Net Flows
Bitcoin Miners’ 5 Day Average Net Flows

The hashprice index now sits at 54 PH/second, down from 59 PH/second a month ago, though still far stronger compared to early this year. With electricity costs around $0.09 per kWh, even older rigs such as Bitmain’s S19 XP, launched in late 2022, remain profitable—indicating the situation is not yet critical.

Another source of pressure is the growing capital shift toward artificial intelligence (AI) infrastructure. Recently, TeraWulf struck a $3.2 billion deal with Google to expand its AI data center in New York. Other miners, including Australia’s Iren and Canada’s Hive, are also investing heavily in GPUs and building AI-focused data centers. This trend has raised concerns that Bitcoin may lose investor attention to the booming AI sector.

Bitcoin Hashrate Price Index
Bitcoin Hashrate Price Index

Still, Bitcoin’s fundamentals remain strong. The network hashrate is closing in on an all-time high of 960 million TH/second, up 7% in the past three months. This underscores the resilience of the system, despite miner sell-offs.

There is no evidence yet that miners are under immediate financial stress or forced to liquidate holdings. Even if selling persists, institutional inflows appear more than capable of absorbing the pressure. As such, the $485 million in miner sales looks more like routine profit-taking rather than a sign of deeper trouble.

(2 votes)

5.0/5

(2 votes)

Latest

70% Of Bnb Chain Memecoin Investors Are In Profit

News | Editor Choice | Memecoin

70% of BNB Chain Memecoin Investors Are in Profit – CZ’s “Meme Season” Is in Full Swing

The memecoin wave on the BNB Chain is exploding, with over 70% of investors reporting profits as capital floods in — marking the start of the most vibrant “meme season” ever predicted by CZ.

Paypay Acquires 40% Stake In Binance Japan

News | Editor Choice | Policy & Regulations

PayPay Acquires 40% Stake in Binance Japan

The acquisition of a 40% stake in Binance Japan marks a historic milestone for PayPay, paving the way for the convergence of traditional payments and digital assets, and shaping the future of Japan’s digital finance landscape.

Bitcoin Boom Ahead Institutional And Derivatives Data Reveal

News | Bitcoin | Editor Choice

Bitcoin Boom Ahead? Institutional and Derivatives Data Reveal

Market experts believe that Bitcoin (BTC) is in a phase of accumulation rather than topping, predicting a retest before the next explosive breakout.

Bnb Super Cycle – A Massive Rally Or Binance’s Next Big Bubble

News | Altcoin | Editor Choice

BNB Super Cycle – A Massive Rally or Binance’s Next Big Bubble?

Binance’s BNB token is heating up the crypto market with a series of new record highs, but amid the excitement of the so-called “Super Cycle,” many analysts warn it could just be a bubble waiting to burst.

Bitcoin Cools Off After Record Breaking Rally

News | Bitcoin | Editor Choice

Bitcoin Cools Off After Record-Breaking Rally

After a series of record-breaking gains, Bitcoin suddenly slipped more than 2% on Tuesday afternoon as a wave of profit-taking spread and investor caution returned to the crypto market.

Screenshot 2025 09 10 100533