BTC miners sold $450 million worth of coins in a day

Historically, bitcoin mining participants move into a selling phase when cryptocurrency prices begin to rise

18.01.2024 - 10:00

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2 min

What’s new? On January 17, bitcoin miners sold 10 233 BTC worth $450 million, according to data from the CryptoQuant platform. According to a report from the Bitfinex exchange, miners began accumulating the digital asset around mid-2023, when prices and equipment profitability were lower. Historically, when cryptocurrency prices rise, as they have in recent months, miners move into a selling phase to lock in profits or replenish cash reserves.

CryptoQuant’s data

What else is known? Bitcoin miner reserves are at their lowest level since July 2021 at 1,83 million coins, valued at around $78 billion. Over the past 12 months, miner reserves have decreased by 22 800 BTC, with the overall figure remaining relatively stable since the beginning of 2021.

According to CryptoQuant, the Bitcoin Miners’ Position Index (MPI) started to rise on January 15, indicating that a possible sell-off is approaching. MPI is the ratio of total miner outflows in dollars to the moving average (MA) of total outflows over one year.

Marathon miner sets record for monthly mining volume with 1853 BTC

The company expects to increase the hashrate to 50 EH/s in the next two years

Earlier, CoinShares reported about the growth of bitcoin mining network by 90% in a year. According to analysts’ calculations, the average cost of mining 1 BTC after halving the network will be $37 856, which may create difficulties for companies with high operating costs. According to their data, the most favorable position after halving will be occupied by mining firms Riot, TeraWulf, and Cleanspark.

As of January 18, 09:30 UTC, BTC is trading at $42 798 on Binance, having added 0,05% overnight, while down 7,6% for the week.

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