Miners have sold $2 billion worth of $BTC
since the beginning of June
Into The Block researchers said that Bitcoin cryptocurrency (BTC) miners have sold more than 30,000 BTC coins worth about $2 billion since the beginning of June 2024. This was the fastest pace of asset sales in the market over the past year. According to analysts, the April halving triggered a reduction in margins, which caused massive sell-offs.
Analyzing data on BTC miners' reserves, shows a significant decline in their volumes in recent months. This could have significant consequences for the cryptocurrency market. According to the graph presented, there is a noticeable drop in Bitcoin reserves from July 2023 to June 2024. In July 2023, reserves were above 1.95 million BTC, but by June 2024, they have fallen to less than 1.9 million BTC.
This trend can be attributed to various factors. Notable among them are rising mining costs, including higher electricity and equipment costs, as well as a decline in the block reward after the past halving. With rising operating costs, digital asset miners may be forced to sell their reserves of BTC coins to cover costs and keep their businesses profitable.
The peak in miners' reserves seen in January 2024 may indicate a short-term buildup of reserves before further declines. This period was also driven by the expectation of higher Bitcoin prices, which incentivized miners to temporarily hold their assets. However, the subsequent decline in reserves suggests that they began to sell off their holdings more actively.
The decline indicates growing pressure from miners, which could potentially increase supply in the market and put pressure on the current Bitcoin price. Second, the decline in reserves may also indicate a drop in miners' confidence in the short-term outlook for BTC price growth, which could worsen the overall sentiment of market participants. #BTCFOMCWatch #BTC☀