Selling pressure from Bitcoin miners has dropped sharply, with BTC inflows from miners into Binance falling to levels not seen since mid-2023. This shift is important because mining distribution is one of the most persistent sources of structural selling pressure in the market, and the latest data suggests that pressure has subsided for the time being.
In one after via When the same activity is measured across all exchanges, the figure rises only slightly to 4,381 BTC, reinforcing the point that the slowdown is not limited to a single trading platform.
Bitcoin Miner Sells Pressure Drops
The turnaround follows a brief spike earlier this year linked to extreme weather in the United States. According to Darkfost, the influx of miners increased during the ice storm that hit the country in late January and early February, when several major mining pools in the US were forced to scale back or temporarily suspend operations. That disruption, he argued, likely translated into increased BTC sales as miners worked to cover ongoing costs despite reduced production.
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“It is important to remember that during these weather events, several major mining pools in the US were forced to slow or temporarily halt operations,” Darkfost wrote. “Even when activity is reduced, fixed costs remain high, including electricity, infrastructure and operational costs. This situation has likely prompted some miners to increase their BTC sales to maintain liquidity.”
That dynamic now seems to have disappeared. “Since then, the trend has clearly reversed,” he added, describing current inflows as having fallen to “historically low levels.” He noted that a similarly weak reading for miner transfers to Binance was last seen on June 5, 2023.
The broader implication is clear: miners are currently sending less BTC to exchanges, which in turn indicates they are selling less on the market. Darkfost described that as a constructive development, writing that “the current decline in inflows suggests that miners have significantly reduced their BTC sales, which can be interpreted as a constructive signal for the market as the structural selling pressure from this cohort appears to be temporarily easing.”
That does not mean that the risk has disappeared. Darkfost estimates that miners still hold about 1.8 million BTC in reserves, a stockpile large enough to matter if market conditions change and distribution accelerates again. In other words, the absence of aggressive selling is supportive, but is not the same as a supply surplus that disappears entirely.
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The miner data also comes in alongside signs that Bitcoin is still trying to rebuild a firmer base among short-term holders. In a separate note, Darkfost said the market has spent almost a month trying to stabilize above the cost basis of the youngest cohort of short-term holders, the 1-week to 1-month group. That cohort’s estimated breakeven level is $68,200, making it the only segment of short-term holders that is currently roughly flat.
Further up the ladder the pressure points are steeper. The 1 to 3 month cohort has an estimated cost basis of $83,500, while the 3 to 6 month group is even higher at $96,900. Darkfost said the 1-3 month level acted as resistance the last time the price approached it as many short-term holders took advantage of the move to exit the market, pushing the broader short-term holding segment back into unrealized losses.
At the time of writing, BTC was trading at $68,553.
Featured image created with DALL.E, chart from TradingView.com