Bitcoin (BTC) Miners Amplify Sales Amidst Slowing Demand: Insights from CryptoQuant
- Bitcoin miners have increased their selling activity in the last month due to slow demand growth for BTC.
- This decrease in demand is evident in low Bitcoin whale demand, fewer purchases from spot exchange-traded funds in the United States, and the Coinbase premium falling below zero.
- If the trend continues and miners’ profitability turns negative, the price of BTC may witness more pressure.
Bitcoin miners ramp up selling activity amid slow BTC demand growth, potentially putting more pressure on BTC prices.
Miners Increase Selling Activity
Since the halving was completed on April 19, miners have sent a large amount of BTC to spot exchanges, creating an imbalance in the market. Their revenue has decreased significantly following the reduction of block rewards by 50%. Currently, mining entities are selling their holdings to cover operational costs. If this trend continues and miners’ profitability turns negative, the price of BTC may witness more pressure.
High Miner Selling Activity Outpaces Demand
Due to the high miner selling activity, BTC supply is outpacing demand. CryptoQuant head of research Julio Moreno revealed that the total balance of BTC at over-the-counter (OTC) desks started to increase when the crypto asset peaked at $73,000 in mid-March. OTC supply has remained on the rise since then, hitting its highest level since November 2022, but demand has slowed.
Demand for BTC Slows Down
The monthly growth of BTC demand from permanent holders has plummeted 50% from 200,000 BTC in late March to 96,000 BTC at the time of writing. Demand grow... Read the full article for FREE at COINOTAG!
