Bitcoin Miners Dump $450 Million in One Day

On January 17, Bitcoin miners offloaded over 10,000 Bitcoins, marking the most significant drop in miner reserves seen in more than a year.

CryptoQuant, an on-chain analytics firm, noted that miner reserves decreased by 10,233 BTC on that day, valued at around $450 million at current rates.

Typically, Bitcoin miners alternate between phases of holding and selling their coins.

A 2023 report by Bitfinex observed that miners started hoarding Bitcoin around the middle of 2023, a period characterized by lower prices and reduced profitability.

In contrast, when prices and profitability rise, as seen in recent months, miners tend to shift towards selling.

Miners often sell their Bitcoin holdings to improve cash flow or take advantage of higher market prices during a rally. Recently, Bitcoin's price has fluctuated between $42,000 and $43,000.

Current data also indicates that Bitcoin miner reserves have reached their lowest point since July 2021, holding about 1.83 million coins. Despite this reduction, the reserves still represent a significant value of approximately $78 billion.

Over the last year, Bitcoin miner reserves have diminished by 22,800 BTC. However, the total reserve amount has remained fairly steady since early 2021.

CryptoQuant reports that the Bitcoin Miners’ Position Index (MPI) began to rise on January 15, suggesting an upcoming phase of selling. The MPI measures the total outflow from miners relative to its one-year moving average.

Sources:

https://cointelegraph.com/news/bitcoin-miners-selling-mode-450m-btc-in-a-day

https://cryptoquant.com/asset/btc/chart/miner-flows/miner-reserve?miner=all_miner&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line

https://blog.bitfinex.com/wp-content/uploads/2023/08/Bitfinex-Alpha-67-1.pdf

https://twitter.com/ali_charts/status/1747580480868819313

https://cryptoquant.com/asset/btc/chart/flow-indicator/miners-position-index-mpi?window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line

https://bitinfocharts.com/comparison/bitcoin-hashrate.html#3m

https://twitter.com/Dennis_Porter_/status/1747804292856385680