Bitcoin miners reducing the BTC holdings as ‘miner price’ nears $65K- What’s Next for BTC?

Bitcoin miners reducing the BTC holdings as 'miner price' nears $65K- What's Next for BTC?
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Bitcoin miners reducing the BTC holdings as ‘miner price’ nears $65K- What’s Next for BTC?

Bitcoin miners are emerging as significant profit-takers amid the challenges faced by BTC, struggling to maintain its position near $43,000, according to recent data. Glassnode, an on-chain analytics firm, reports a continuous trend of mass offloading by Bitcoin miners as the year comes to a close. Analysts note that miners have been consistently reducing their BTC balances since mid-October.

 

As of December 28, the most recent data available from Glassnode indicates a decline of 700 BTC in miner wallets within a 24-hour period. Comparatively, since the local peak on October 22, miners’ balances have decreased by 12,700 BTC. Despite the rise in BTC/USD from $30,000 to nearly $45,000 during this period, there are concerns that the ongoing reduction in miner balances may impact the prospects of bullish price continuation.

Popular trader Ali, referencing figures from on-chain analytics platform CryptoQuant, highlights the “substantial” nature of the balance reductions and suggests potential implications for Bitcoin’s price trajectory.

<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>In a notable move, <a href=”https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw”>#Bitcoin</a> miners have sold over 3,000 <a href=”https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw”>#BTC</a> in just the last 24 hours, amounting to approximately $129 million. This substantial sell-off could influence the price of <a href=”https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw”>$BTC</a>. <a href=”https://t.co/mUl4ebDwpm”>pic.twitter.com/mUl4ebDwpm</a></p>&mdash; Ali (@ali_charts) <a href=”https://twitter.com/ali_charts/status/1740477131493454101?ref_src=twsrc%5Etfw”>December 28, 2023</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>

 

Bitcoin miners have experienced a notable revenue boost in Q4, with increased transaction fees amid the highest BTC price levels since April 2022. Charles Edwards, the founder of Capriole Investments, emphasizes the profitability of the mining sector, stating that miners are “absolutely printing” with a miner price at $64,000, resulting in a 50% additional profit on top of the Bitcoin price.

As the market anticipates the upcoming block subsidy halving, scheduled to reduce rewards by 50% to 3.125 BTC, industry experts like Filbfilb predict that miners may aim to accumulate BTC stocks in preparation for this event. Charles Edwards previously labeled the April halving as the “most important” and a “transition point,” foreseeing Bitcoin becoming the hardest asset globally by 2024. He emphasized that Bitcoin’s inflation rate will drop to half that of gold, positioning it as the superior store of value.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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