Bitcoin miners are being sold to cover investment.

The selling pressure of the Bitcoin market is increasing, and miners are increasing in what is described as a ‘strategic move'. According to analysts, prudent Bitcoin miners will continue to increase the sale of assets to cover expenses as the next half-decline approaches.

On January 26, on-chain analytics provider CryptoQuant reported that miners selling before halving their bitcoin reserves is a strategic move that could lead to more selling pressure.

Bitcoin miners add to the selling pressure

According to analysts, a “huge change” is happening in the Bitcoin mining sector as the halving approaches.

On-chain data shows a significant drop in Bitcoin reserves held by miners. Moreover, the transfer of BTC to the central exchange has increased. He asserted.

“In fact, the flow of bitcoins from miners to exchanges is three times greater than the current flow to miners. This trend reflects strong sales pressure from the mining community.

Miners take profits before the halving event to cover operating costs and prepare for future investments. CoinGecko reports that the halving will happen in 87 days, around April 22.

Moreover, as the reward for mining has been reduced to 3.125 cents, this will effectively reduce miners' income unless the price of Bitcoin increases proportionately.

Read more: Who will have the most Bitcoins in 2024?

Bitcoin miners must constantly invest in more efficient equipment to keep up with the ever-increasing competition. Therefore, selling some of their BTC reserves provides capital for these expenses and investments. CryptoCount said:

“Increased selling pressure by miners may affect the price of Bitcoin in the short term.”

Bitcoin mining is currently 1.83 million BTC, which is about $73.4 billion. They have been decreasing since the beginning of the sales phase at the end of October.

BTC returns $40,000

Selling pressure was exacerbated by outflows from the industry's largest crypto asset manager, Greyscale.

Since the approval of spot ETFs in the US on January 11th, Greyscale Bitcoin Trust has traded around 106,575 BTC.

In addition, the US government plans to auction off more than 2,930 BTC worth an estimated $130 million held in the Silk Road case.

However, Bitcoin prices regained the psychological $40,000 level during the Friday morning trading session in Asia.

The property was changing hands at $40,120 at the time of writing following a small daily gain. However, it is down 13% over the past two weeks, and the short-term outlook is weak.