CryptoQuant: Reduced selling pressure from miners caused BTC to rise above $46 000

The largest mining companies in the United States continue to increase their bitcoin reserves

09.02.2024 - 08:40

635

3 min

What’s new? The selling pressure from bitcoin mining companies has decreased after a spike late last year, The Block reports, citing a report from the CryptoQuant platform. Thus, daily sales by miners have dropped from 800+ bitcoins per day in November-December to less than 300 coins in 2024. Against this background, the BTC exchange rate has overcome the $46 000 mark.

The Block’s material

What else is known? The largest US mining companies continue to increase bitcoin reserves. Thus, CryptoQuant charts show that Marathon Digital’s bitcoin share has been steadily growing over the past few months.

Analysts noted that miners are holding reserves despite declining fee revenue on the Bitcoin network. Sales pressure remains low even after daily fees collapsed 90% from near-record levels in December. The drop in fees is due to a decline in network activity as a result of fewer transactions coming from Inscriptions and BRC-20 token miners, the experts added.

Ordinals and Inscriptions: the fundamentals of BRC-20 tokens

We explain the distinctive features and ways of storing tokens and NFTs based on the blockchain of the first cryptocurrency

The number of transactions on the Bitcoin network has fallen from an all-time high of 731 000/day in late December to a current three-month low of 278 000.

According to data from analytics platform Coinglass, bitcoin’s price movement caused more than $49 million in leveraged positions to be liquidated. Most of them were short ($47 million).

At the time of writing, BTC is trading at $46 306 on Binance, the asset has added 4,04% over the day and 7,3% over the week (data from the aggregator CoinGecko).

Earlier, CoinShares reported about the growth of the bitcoin mining network by 90% in a year. According to the prediction, the average cost of mining 1 BTC after halving will be $37 856, which can create difficulties for companies with high operating costs.