Bitcoin washout signal: Miners sell Bitcoin in preparation for halving

When Bitcoin hit $73,095 on Tuesday, a new wave of selling pressure quickly emerged, reaching a high of $68,600 around 1:00 midnight Beijing time.

But then, Bitcoin rebounded back above $62,000.

Glassnode on-chain data shows evidence that Bitcoin miners are profiting from the latest rise in Bitcoin prices. Factors affecting offloading may be preparations for reduced returns after the halving, increased mining difficulty, and record-breaking computing power.

The level of selling by miners is normal in a bull market, and this is especially true for a large increase in on-chain transactions, where miners are selling in large quantities.

More data from Glassnode shows that Bitcoin balances in miners’ wallets have dropped to a three-year low of 1.8 million, validating the offloading.

Therefore, as the price of Bitcoin increases and miner revenue continues to grow, there is also more profit booking among these market participants.