Key Points
- Bitcoin miners have sold 85,503 BTC in the last 48 hours, causing a significant drop in miner balances.
- Despite major sell-offs, Bitcoin’s price remains resilient, consolidating near its all-time high of $100,000.
Bitcoin miners have recently offloaded an enormous amount of Bitcoin, specifically 85,503 BTC, over the past two days. This has resulted in miner balances falling to around 1.95 million BTC, marking the most significant decline in miner holdings in 2024.
Miner Selling and Price Trends
The recent drop in miner balances is the most substantial since February, yet it hasn’t directly impacted Bitcoin’s price momentum. An examination of the miner supply on Santiment showed that on 5 December, it was over 2 million but has since fallen to approximately 1.95 million.
Historically, significant miner sell-offs often coincide with market corrections. However, 2024 has seen a divergence between miner activity and price trends. Despite these sell-offs, non-mining whales and sharks continue to accumulate, indicating the complexity of market dynamics.
Network Metrics and Implications for Bitcoin’s Price
An analysis of Bitcoin’s hashrate showed that it reached a record high of over 900 EH/s, indicating strong competition among miners. Despite the drop in miner balances, high mining activity continues. Miner revenue from fees remains low, with transaction fees contributing to only about 10% of total miner earnings.
The divergence between miner activity and price trends highlights Bitcoin’s market maturity. Despite significant sell-offs, Bitcoin’s price remains robust, consolidating near its all-time high as buyers absorb the selling pressure. However, continued selling from miners could lead to increased volatility.
Bitcoin’s ability to maintain its price near $100,000 amid massive miner selling reflects the growing influence of non-mining market participants and the asset’s broader adoption. As miners adjust their holdings, market participants will closely monitor Bitcoin’s ability to break past its psychological resistance and sustain its rally.