Following the green light for spot ETFs, Bitcoin [BTC] deviated from the broader market’s anticipations, experiencing a significant correction that left investors grappling with losses. Concurrently, Bitcoin miners seized the opportunity to offload their holdings, intensifying the downward pressure on the coin’s value in the upcoming days.
The miner outflow from Bitcoin recently reached unprecedented levels, as reported by AZC News. In contrast to their pre-ETF approval optimism, miners had been accumulating BTC in anticipation of a price surge. However, the narrative swiftly shifted post-approval, with miners reversing their stance and initiating substantial BTC sell-offs.
As per the latest data, miner outflows surged to a six-year high, channeling over $1 billion worth of BTC to exchanges in the recent past. This significant movement underscored miners’ lack of confidence in Bitcoin, signaling their expectation of an imminent price decline.
Is there a trend in miner behavior?
Our analysis of Glassnode’s data indicates a notable decline in BTC miners’ balance on January 12th. However, as of the latest available information, there has been an uptick in this metric, suggesting a renewed interest among miners to accumulate.
Despite this slight increase in accumulation, miners experienced a decline in profits. This became apparent as BTC miners’ revenue started to decrease on January 11th. The diminishing profits raise concerns about the potential for another round of sell-offs, with potential repercussions on BTC’s price in the upcoming days.
Related: Crypto Trading Volumes Hits Record High Last Week
What are the implications for BTC?
The drop in revenue raises the likelihood of miners selling BTC, especially considering the ongoing selling trend in the broader market. CryptoQuant’s data highlights an increasing reserve of BTC on exchanges, indicating a growing selling pressure at the time of this analysis.
According to CoinMarketCap’s data, BTC’s daily price chart remains in negative territory, trading at $42,629.41 with a market cap exceeding $835 billion. The prevailing market conditions prompt questions about when and how Bitcoin will recover from this recent price decline, making it an aspect worth closely monitoring.
