TechFlow news, according to Bloomberg, data compiled by CryptoQuant shows that since the beginning of 2024, Bitcoin miner reserves—unspent Bitcoin held in digital wallets associated with companies—have decreased by 8,400 tokens, dropping to 1.8 million, a level last seen in June 2021. Analysts say this decline indicates miners are selling Bitcoin.
"Miners have started selling more tokens to improve their balance sheets and fund growth-related capital expenditures in anticipation of tougher conditions when profit margins contract following the block reward halving in April. After the halving, scale will become even more important," said Matthew Sigel, head of digital asset research at VanEck.
Miner selling appears to be putting pressure on Bitcoin's price, which has struggled since January 10, when the U.S. approved its first Bitcoin ETF. During this period, the token has fallen about 6% to $43,000. According to CryptoQuant, 3,617 Bitcoins have moved from miner wallets to exchanges since the ETF approval. On February 1, there was a net outflow of 13,542 Bitcoins—the largest single-day outflow since December 2020.
Cryptocurrency exchange Bitfinex wrote in a recent report: "Miners appear to be selling their Bitcoin holdings to fund purchases of more efficient mining equipment. Reduced revenue could particularly impact smaller mining operations, potentially leading to their insolvency."
