Bitcoin Miners Selling Mode: $450M BTC Dumped in a Day

by Jan 18, 2024CryptoNews0 comments

According to a recent article on CoinTelegraph, Bitcoin miners have entered a “selling mode,” resulting in the disposal of approximately $450 million worth of BTC in just one day. This significant decline in miner reserves marks the largest daily drop in over a year, with more than 10,000 BTC being offloaded. Typically, miners alternate between accumulating and selling phases. During periods of lower prices and profitability, miners tend to accumulate Bitcoin, whereas when prices and profitability rise, as seen recently, they switch to selling. This practice allows them to replenish cash flow or take advantage of higher prices during a rally.

The data also reveals that Bitcoin miner reserves have reached their lowest levels since July 2021, with a total of 1.83 million coins remaining. Despite this decrease, the overall reserve figure has remained relatively stable since early 2021, indicating a consistent level of mining activity. The article highlights the Bitcoin Miners’ Position Index (MPI), which started to rise on January 15, indicating an impending wave of selling. The MPI is a metric that measures the ratio of total miner outflow to its one-year moving average.

In addition to the selling trend, the average hash rates have dropped to their lowest levels since October, currently sitting at around 400 exahashes per second. This decline in hash rates suggests a decrease in mining activity and could be attributed to several large mining facilities in Texas temporarily powering down their operations due to extreme cold weather. These facilities chose to divert energy resources towards securing the state’s power grid.

The article concludes by mentioning the expected cost increases that Bitcoin mining firms, such as Riot, TeraWulf, and CleanSpark, may face following the upcoming BTC halving event in April or May. Despite the selling activity and challenges faced by miners, Bitcoin’s overall market remains robust, with the cryptocurrency continuing to capture significant attention and investment globally.

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