Bitcoin price has halted its upward momentum despite solidifying support at higher levels and ETF optimism. In the next 15 days, we will see significant developments, and despite strong institutional demand, someone is making voluminous sales. So who is selling BTC and will they regret these sales?
The Veterans of the Cryptocurrency Markets
Miners are the oldest, most experienced, and senior investor group in this field. People obtained serious reserves with high rewards from miners before exchanges were established and BTC could be purchased from them. Then, as the calculation difficulty increased with halvings, Bitcoin mining turned into a professional business. Now, there are mining companies traded on world exchanges.
Shares of mining companies have increased up to tenfold because their earnings increased along with the escape from the tough bear market. Data shows that market wolves continue to sell even while the BTC price lingers around $43,000.
Miners’ BTC Reserves
Recent figures from Glassnode show that miners have been steadily selling since mid-October. We had mentioned before that LTC and DOGE miners were also showing the same trend. This reflects miners’ expectations of a price correction due to historical halving performance.
According to Glassnode data, miners sold a full 700 BTC in just 24 hours yesterday. Miners’ balances have decreased by 12,700 BTC compared to the local peak on October 22nd.
During the same period, BTC increased by $15,000, and we saw resistances broken at an unexpected speed. Perhaps if miners had expected such rapid and consistent breaks, they might have been less inclined to sell. However, high costs and operational expenses make it necessary for them to generate cash at every opportunity.
According to popular crypto analyst ali_charts, miner activities could lead to a weakening of the BTC price increase. Referring to data from the on-chain analysis company CryptoQuant, Ali finds this concerning.
Charles Edwards, the founder of Capriole Investments, says that miners are currently profitable according to cost analyses. Miners have been obtaining the best transaction fee earnings since April 2022 because Ordinals have attracted great interest. This is why profitability has increased this year.
“Miners are earning profits as if BTC were at $64,000.”
Filbfilb, the co-founder of DecenTrader, assumes that miners will strengthen their BTC stocking trend before the block reward reduces by 50% to 3.125 BTC, although the halving is still 4 months away.
