BTC Exchange Earnings and Mining Exit Falling – BTC to get $100K back?
Bitcoin (BTC) exchange revenue – the total amount of BTC transferred to exchanges – and mining – the amount of BTC sent by miners to the exchange – have decreased significantly since November 2024, reducing selling pressure.
According to data from CryptoQuant, the BTC exchange rate in November 2024 peaked at 98,748 BTC on November 25th, following roughly two months of high exchange flow activity.
In December 2024, the flow of exchanges decreased, but remained significant, with the total number of bitcoins sent to exchanges ranging from 11,000 to 79,000 coins per day.
The drop in exchange flow was accompanied by a drop in miner flow – indicating a decrease in selling pressure from Bitcoin miners who regularly unload their BTC holdings to pay for operating costs.
Bitcoin exchange income. Source: CryptoQuant
Related: Bitcoin Bulls Run at $97K: Key BTC Price Resistance Levels to Hit
Mining flows are down from November highs
Following the election of Donald Trump, miners profited during Bitcoin's historic price rally, with outflows from top miners seen in November.
According to CryptoQuant data, the outflow peaked on Nov. 11, when miners sent 25,367 BTC to exchanges as the price of Bitcoin hit about $88,000.
On January 1, 2025, miners sent 5,489 BTC to exchanges, then on January 2, 5,748 BTC and on January 3, 2,133 BTC.
Mining flow from July 2022 to January 2025. Source: CryptoQuant
Bitcoin needs to increase trading volume to rally in January.
Bitfinex analysts recently told Cointelegraph that they expect Bitcoin to trade between $95,000-$110,000 in January.
However, according to market analyst Axel Adler, Bitcoin needs to increase daily trading volume to overcome resistance and see an upward move. The analyst wrote in a January 4 post:
“The market structure remains bullish with no signs of overheating. But we lack enough trading volume to push hard. So we expect the market to recover from the holidays.”
Bitcoin exchange-traded funds are showing signs of rebounding from several days of significant outflows – on January 3, 2025, $900 million in revenue.
This reversal of ETFs will revive interest in Bitcoin from traditional finance and institutional investors.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
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