Bitcoin Faces Selling Pressure as Miners Liquidate $2 Billion
Bitcoin (BTC) surged above $70,000 earlier this month amid a streak of 19 consecutive inflows into spot ETFs.
However, the rally has since stalled, leading to a potential second negative monthly close this year.
The slowdown in Bitcoin’s price movement is attributed to substantial selling by miners and recent outflows from spot ETFs. Matthew Sigel, head of digital research at Bitcoin ETF issuer VanEck, highlighted that “almost all Bitcoin miners are liquidating 100% of their coins.”
nearly all #bitcoin miners are selling 100% of their coins, while $CLSK is managing to Hodl their BTC & use their relatively USD balance sheet to acquire new capacity. pic.twitter.com/S2MMRQFjOW
— matthew sigel, recovering CFA (@matthew_sigel) June 18, 2024
Supporting this observation, blockchain analytics firm IntoTheBlock noted a significant decline in the Bitcoin reserves of major miners.
🚨 Bitcoin miners have sold over 30k BTC (~$2B) since June, the fastest pace in over a year. The recent halving has tightened margins, prompting this sell-off. pic.twitter.com/dy289bu7p4
— IntoTheBlock (@intotheblock) June 22, 2024
The metric used to assess miners’ financial health, Bitcoin reserves, has hit a yearly low of around 1.9 million BTC, reflecting miners’ increased selling activity. In June alone, miners have sold approximately 30,000 BTC worth about $2 billion, marking the fastest pace of sales in over a year.
READ MORE: Altcoin Market Faces Tough Correction Amid Crypto Consolidation
“Bitcoin miners have liquidated over 30,000 BTC (~$2 billion) since June, driven by tightened profit margins post-halving,” stated IntoTheBlock.
The uptick in selling follows the halving event in April, which slashed block rewards by 50% to 3.125 BTC, causing daily miner revenues to drop to around $35 million from a peak of $78 million in March.
These developments have heightened selling pressure on Bitcoin, potentially leading to its second negative monthly close of 2024. Coinglass data shows Bitcoin down 4.56% in June, following a 14% decline recorded in April.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
