On January 17, Bitcoin miners offloaded more than 10,000 BTC, marking the most substantial daily decline in their reserves in over a year, according to data from CryptoQuant. The total value of the Bitcoin sold amounted to approximately $450 million. Miner reserves have reached their lowest point since July 2021, standing at 1.83 million coins, but still representing a significant value of approximately $78 billion.
Bitcoin miners typically switch between hoarding and selling phases. Last year, miners were accumulating Bitcoin, but with recent price and profitability increases, they have shifted to selling phases. Despite the decrease in miner reserves, Bitcoin’s price has remained relatively stable, hovering between $42,000 and $43,000.
The cryptocurrency industry is also experiencing a decline in Bitcoin’s hashrate, reaching its lowest point in months. This reduction is partly due to miners redirecting power to the grid during extreme winter storms in the USA. The hashrate dropped by 34% from a high of 629 EH/s to 414 EH/s, with electricity usage restrictions imposed by the Electric Reliability Council of Texas (ERCOT) contributing to the decline.
Bitcoin’s resilience amidst the selling by miners could be attributed to significant inflows into Bitcoin ETFs, with nearly $900 million invested in the first four days since their launch. On the other hand, stocks of Bitcoin mining companies have underperformed, facing challenges such as reduced investor interest and the potential impact of lower Bitcoin prices following the approval of spot Bitcoin ETFs.
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