Bitcoin Miners In ‘Sell Mode’, Dumping $450 Million Of BTC In A Day
Bitcoin (BTC) miners sold more than 10,000 bitcoins in a single day on January 17, marking the biggest daily drop in mining in more than a year.
According to data from on-chain analytics provider CryptoQuant, Bitcoin mining volume fell by 10,233 BTC on January 17, which is roughly $450 million at current prices.
Miners often go through the stages of stockpiling and selling. According to the 2023 Bitfinex report, miners started hoarding Bitcoin around mid-2023 when prices and profitability were low.
When prices and profitability increase, as has been the case in recent months, miners move into selling positions. Historically, miners sell coins to replenish cash flow or to hold higher prices in a rally. Bitcoin price has been in the $42,000 to $43,000 range for the past few days.
The data shows that Bitcoin mining reserves are at their lowest level since July 2021 at 1.83 million coins. However, this is still a substantial sum of $78 billion.
#Bitcoin mining in sell-off mode: The latest on-chain data from @cryptoquant_com shows a spike in sell-off activity by #BTC miners. You have downloaded 10,600$BTC in the last 24 hours, worth about $455.8 million! pic.twitter.com/JEtasWfR6N
— Ali (@ali_charts) January 17, 2024
Over the past 12 months, BTC mining reserves have decreased by 22,800 BTC, but the total reserve figure has remained relatively stable since early 2021.
On January 15, the Bitcoin Miner Position Index (MPI) began to signal, indicating that a possible sell-off is imminent, according to CryptoQuant.
MPI is the ratio of total mining output to the annual average of total mining inflow.
Related: Bitcoin halving 2024 – Miners predict possible consequences of halved BTC rewards
On January 14, Cointelegraph reported that Bitcoin mining companies Riot, Terawolf and CleanSpark are best positioned to handle the expected surge in spending following the BTC halving event in April or May.
Moreover, average hash rates have dropped to their lowest level since October at around 400 exhashes per second, according to Bitinfocharts.
Meanwhile, several large mining facilities in Texas have shut down some of their operations to maintain power for the state during the severe cold, Cointelegraph reports.
HUGE: #Bitcoin hashrate falls below 30-day mark as #Bitcoin miners across the US power up to balance the grid. pic.twitter.com/TFvoZpkYfX
— Dennis Porter (@Dennis_Porter_) January 18, 2024
Magazine: Crypto City: A Guide to Austin
