Selling pressure from Bitcoin miners is decreasing, what does this mean?

Over the past few weeks, Bitcoin (BTC) has failed to benefit from the favorable macroeconomic climate, sparking significant rallies in equities.

Analysts attribute this to BTC investors and miners offering long-selling products. However, the tide may change soon as the selling pressure from Bitcoin miners is waning.

According to the latest Bitfinex Alpha report, the amount of BTC transferred from miners' wallets has decreased significantly, indicating stability. According to analysts, such a development is positive for the value of bitcoin, and the cryptocurrency may soon continue its upward trend.

Table of Contents

Toggle

Bitcoin Mining Sales Pressure Plummets

After the Bitcoin halving in April, mining revenue has halved. With old mining machines economically unviable due to high operating costs, miners had to liquidate their Bitcoin holdings to stay afloat. These entities sold their assets through over-the-counter transactions and the open market to sustain their operations.

While the crypto market appears to be adjusting to the increased volume of sales, the frequency and volume of bitcoins being withdrawn from miners' wallets has decreased. Once the market has fully absorbed the selling volume, the possibility of a rally increases; Therefore, the decrease in mining sales pressure is a positive development.

Interestingly, market participants assume that the buying/selling pattern of old diggers has little to do with prices these days. However, recent historical patterns say otherwise.

Bitfinex analysts have identified similar mining sales that will affect the market price from May to September 2023 and December 2023 to January 2024. After the selling pressures subsided during those times, Bitcoin continued to move northward.

By the time the 2022 bear market lows reach the Hashrate reduction point, it will be a fair conclusion that we've temporarily passed the mine selling pressure, and many weak miners have already taken it. The analysts added.

The latest Outlook is still vulnerable.

While mining pressure has eased, long-term holders continue to weigh on other supplies from large sales. The German government has been on sale for the past few weeks, moving coins from the lost crypto exchange Mt Gox.

Coupled with renewed gains by other long-term bitcoin holders, the latest sighting of German law enforcement cracking down on BTC shows that BTC is vulnerable and could experience more volatility.