- BTC’s miners’ inflow registered an increase when mining costs went up
- Bitcoin’s price increased by more than 8% in the last 24 hours, and a few metrics were bullish
Bitcoin’s [BTC] price remained under the $28,000 mark for multiple weeks, which impacted miners’ revenue. As per the last analysis, miners had to sell their BTC holdings to make ends meet.
However, the scenario as of 21 June was changing as BTC was witnessing a price pump. But will this uptrend be enough to change miners’ mindsets in the coming days?
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Why are the miners selling?
SignalQuant, an author and analyst at CryptoQuant, recently posted an analysis highlighting that miners were selling their assets. As per the analysis, miners have increased their BTC inflow to exchanges.
This situation emerged because of the drop in BTC’s price over the last few weeks. Bitcoin’s price plummet resulted in an increase in mining costs. Therefore, to keep their operations going, miners were forced to sell their BTC holdings.
Source: CryptoQuant
The price plummet not only caused an increase in mining costs, but miners’ revenue also declined. This was evident from Glassnode’s chart, which pointed out a decline in the metric since the beginning of May 2023.
Source: Glassnode
Bitcoin’s latest uptrend looks promising
While miners increased selling pressure on BTC, the coin’s price recently went the other way as it registered gains. According to CoinMarketCap, in the last 24 hours alone, BTC’s price shot up by more than 8%.
At the time of writing, Bitcoin crossed the $28,000 mark and was trading at $28,966 with a market capitalization of over $562 billion.
Source: CoinMarketCap
The increase in BTC’s price can have a positive impact on the coin’s mining industry. It can increase miners’ profits, which can then change miners’ motives for selling BTC. Such an incident could result in a further surge in BTC’s price over the coming days.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Is BTC’s bull rally here to last?
A look at Bitcoin’s on-chain metrics gave an idea of what its near-term future might look like. For example, BTC’s exchange reserve was declining. This suggested that the coin was not under selling pressure.
Furthermore, BTC’s binary CDD was green, meaning that long-term holders’ movements in the last seven days were lower than the average. However, its taker buy/sell ratio was red.
The metric revealed that selling pressure was dominant in the market. In addition to that, despite the recent price pump, miners continued to sell their assets, as evident from the Miners’ Position Index (MPI).
Source: CryptoQuant
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