The Fall in Bitcoin Miners' Selling Pressure Signals a Potential Bullish Period Going Forward
Bitcoin miners are observed to be changing their behavior, which could herald a critical change for the market.
In particular, there is a significant decrease in the amount of Bitcoin sold by miners.
CryptoQuant analyst Crypto Dan emphasizes this trend and states that an upward trend may begin for Bitcoin.
Decrease in Selling Pressure of Bitcoin Miners
According to CryptoQuant's Crypto Dan, there is a significant decrease in the pressure from miners to sell Bitcoin. Historically, miners have had significant influence on price trends because they are large holders of Bitcoin. The last halving event reduced Bitcoin mining rewards by 50%, causing older and less efficient mining equipment to become unprofitable and overall mining activity to decrease. This reduction led to a decline in the number of Bitcoins sold in OTC transactions as miners attempted to maintain operations.
“Selling pressure from miners is decreasing,” says Crypto Dan. “The market is currently absorbing these sales and the amount of Bitcoin leaving miners' wallets has decreased significantly.” This observation suggests that the market has moved beyond the intense miner-driven selling period and sets the stage for upward momentum in Bitcoin prices.
Historical data from CryptoQuant supports this analysis. It refers to the period of largely stable price movements from intense miner sales between May 2023 and September 2023 and December 2023 and January 2024. After these intense selling periods ended, Bitcoin generally continued its upward move.
