Bitcoin miners’ selling pressure hits 3-year low
Bitcoin (BTC) miners’ selling pressure has reduced to lows last witnessed three years ago. The miners ease up on the distribution campaign they previously embarked on in 2022. The relief recorded among miners can be attributed to bitcoin’s recently-engineered rally, resulting in a 5-month high.
Sell pressure reduces to 2019 lows
Last year, pandemonium ensued in the bitcoin mining scene as miners resorted to capitulation to salvage what was left of their already-dwindling revenues. This led to a substantial reduction in miners’ balance and massive declines in mining stocks. Last December, mining analyst Jaran Mellerud revealed that the total valuation of public miners was at $2 billion, as opposed to $17 billion in November 2021.
However, the latest bullish market atmosphere has triggered a reversal of the trend, as highlighted by BitFinex in a recent blog article. Citing Glassnode data, Bitfinex revealed that the selling pressure on miners has reduced to a 3-year low, as the amount of BTC sold every week significantly dropped below 100 coins. This metric is indicated in a sharp drop in miners’ balance on exchanges to levels last witnessed in 2019.
Conversely, the markets had observed a surge of selloffs last year, as miners began selling out more bitcoin tokens than they were mining. The recent trend reversal suggests that miners have either switched to an accumulation habit or are already doing that amid the recent price uptick.
Bitcoin mining difficulty reaches ATH
Data from CryptoQuant charts also substantiates the claims from the BitFinex report. The Bitcoin Puell Multiple reveals a gradual increase in miners’ revenue since the start of the year. The metric increased from the 0.61 value observed on Jan. 1 to the current value of 0.92. Additionally, the Miner Netflow indicator suggests a 0.73% decrease in net flows in the past 24 hours.
Moreover, as the industry registers the much-needed relief, miners have started turning their rigs back on, further contributing to increased mining difficulty. Difficulty recently reached a new all-time high of 37.5 trillion hashes after collapsing in the first week of the new year. The surging mining difficulty could put a new strain on profitability for miners.