Unraveling Bitcoin Miners’ Role Post-New All-Time High: A Comprehensive Insight

Key Points

• Bitcoin miners’ selling has doubled, but the market is absorbing the pressure.
• Despite selling, miners are strategically accumulating most of the newly mined Bitcoin.

Bitcoin has seen notable gains in the past month, reaching a new all-time high. This surge has increased miners’ profit margins by 40% above the yearly average.

Increased Miner Activity

Profitability often results in profit-taking, as noted by Cryptoquant analyst Axel Adler. Post the cryptocurrency reaching $110,000, miners have increased their exchange activities.

Bitcoin miners’ inflows have doubled from an average of 25 BTC to 50 BTC daily, indicating a 100% increase in Bitcoin being sent to exchanges. This suggests significant selling pressure from miners. However, miner-to-exchange inflows are still below historical highs.

Strategic Selling and Accumulation

Miners seem to be strategically selling to finance operations while accumulating most of the newly mined BTC. Bitcoin’s miner supply ratio has declined to 0.090, suggesting miners are selling less of the mined BTC and showing confidence in the market.

Furthermore, Bitcoin’s Puell Multiple was around 1.4 at the time of writing, a reading typically seen during a healthy bull market. Until this metric rises to 4, miners are unlikely to resort to aggressive selling.

While there has been selling from miners, it’s not extreme. The market is effectively absorbing the selling pressure, as shown by Bitcoin’s exchange netflows remaining mostly negative since hitting an ATH.

In conclusion, even with the current selling, BTC is in a healthy phase and hasn’t reached historical peaks. If selling accelerates and buyers step back, we may see a pullback on the charts. However, under current conditions, BTC could still recover from its recent retrace and reclaim $111k.