- Bitcoin miners’ earnings have declined in the recent past, as have their balances.
- The BTC price chart remained in the red and selling pressure was high.
Since the adoption of spot ETFs Bitcoin [BTC] has not acted in line with what the broader market expected. This was because the price of the king coin registered a huge correction.
As investors suffered losses, Bitcoin miners began selling off their holdings, which could further depress the coin’s price in the coming days.
The outflow of Bitcoin miners reached a new high
AMBCrypto had before reported how the ETF approval turned out to be bearish for the king of cryptos as its price plummeted 7%.
Just before the ETF’s approval, Bitcoin miners were actually increasing their holdings as they expected the price of the coin to rise.
Like us covered Previously, Bitcoin miners’ share of on-chain trading volume spiked dramatically in the days leading up to the ETF approvals. However, miners quickly changed their outlook as they have now started selling BTC.
Taking the latest data into account, miner outflows have reached a six-year high, sending more than $1 billion worth of BTC to exchanges in the recent past. This suggested that miners had no confidence in BTC and expected the price to fall.
Bitcoin miners move a lot of BTC to exchanges.
Data shows miner outflows hitting a six-year high, sending more than $1 billion worth of BTC to exchanges.
Source: CryptoQuant pic.twitter.com/PyyZ7BCwtS
— Kashif Raza (@simplykashif) January 15, 2024
Do miners sell?
To verify whether miners were selling their assets, AMBCrypto dug deeper. Our analysis of Glassnode’s data showed that BTC Miners’ balances showed a sharp dip on January 12.
Nevertheless, the metric gained an upward momentum heading into press time, suggesting miners were starting to accumulate more.
Source: Glassnode
As miners began to increase their accumulation slightly, their profits fell. This was evident from the fact that after an increase, BTC miners’ earnings began to decline on January 11.
This drop in sales could lead to another sell-off, which could negatively impact the price of BTC in the coming days.
Source: Glassnode
What can you expect from BTC?
Due to the drop in revenue, miners are likely to sell BTC. It is pertinent to note that the broader market had already started selling Bitcoin.
AMBCrypto’s look at CryptoQuant’s data revealed that BTCThe foreign exchange reserve increased, meaning selling pressure on the currency increased at the time of writing.
Source: CryptoQuant
Is your portfolio green? look at the BTC profit calculator
CoinMarketCaps facts pointed out that BTC’s daily price chart was in the red at the time of writing. The king coin traded at $42,629.41 during this period, with a market capitalization of over $835 billion.
It will be interesting to monitor when Bitcoin recovers from this price drop.