- Bitcoin miners’ revenue dropped in the recent past, as did their balance.
- BTC’s price chart remained in the red, and sell pressure was high.
Since the approval of the spot ETFs, Bitcoin [BTC] has not acted in tandem with what the broader market had expected. This was because the king coin’s price registered a massive correction.
While investors were suffering losses, Bitcoin miners started to sell their holdings, which could push down the coin’s price even further in the coming days.
Bitcoin’s miner outflow reached a new high
AMBCrypto had earlier reported how the ETF approval turned out to be bearish for the king of cryptos, as its price plummeted by 7%.
Just before the ETF approval, Bitcoin miners were actually increasing their holdings as they expected the coin’s price to rise.
As we covered earlier, Bitcoin miners’ share of on-chain trading volume spiked dramatically in the days leading to the ETF approvals. However, miners were quick to change their outlook, as they have now started to sell BTC.
If the latest data is to be considered, miner outflows hit a 6-year-high, sending over $1 billion worth of BTC to exchanges in the recent past. This suggested that miners were not confident in BTC and were expecting its price to plummet.
Bitcoin miners moving lots of BTC to exchanges.
Data shows miner outflows hitting a 6-year high, sending over $1 billion worth of BTC to exchanges.
Source: CryptoQuant pic.twitter.com/PyyZ7BCwtS
— Kashif Raza (@simplykashif) January 15, 2024
Are miners selling?
To verify whether miners were selling their holdings, AMBCrypto dug deeper. Our analysis of Glassnode’s data revealed that BTC miners’ balance registered a sharp dip on the 12th of January.
Nonetheless, the metric gained upward momentum towards press time, which suggested that miners had started to accumulate more.
Source: Glassnode
While miners started to slightly increase their accumulation, their profits dropped. This was evident from the fact that after a rise, BTC miners’ revenue started to drop on the 11th of January.
This drop in revenue could lead to yet another sell-off, which could affect BTC’s price negatively over the coming days.
Source: Glassnode
What to expect from BTC?
Because of the drop in revenue, the possibility of miners selling BTC is high. It is pertinent to note that the broader market had already started to sell Bitcoin.
AMBCrypto’s look at CryptoQuant’s data revealed that BTC’s exchange reserve was increasing, meaning that selling pressure on the coin was on the rise at the time of writing.
Source: CryptoQuant
Is your portfolio green? Check out the BTC Profit Calculator
CoinMarketCap’s data pointed out that BTC’s daily price chart remained in the red at press time. The king coin traded at $42,629.41 during this time, with a market cap of over $835 billion.
When Bitcoin recovers from this price plummet will be interesting to monitor.
