According to Cointelegraph: Bitcoin miners sold off more than 10,000 BTC (~$450 million) on January 17, marking the most significant daily decline in miner reserves in over a year, as per on-chain analytics provider CryptoQuant. This selling spree has seen Bitcoin miner reserves plunge by more than 10,000 BTC (~$450 million) in a single day.
Miners typically cycle through phases of accumulation and selling. According to a 2023 report by Bitfinex, miners began accumulating Bitcoin around mid-2023 when the prices were low, and profitability was suppressed. However, as prices and profitability rose in the following months, the miners shifted gears into selling mode.
Presently, Bitcoin's price has been floating within the $42,000 to $43,000 range. The data also reveals that Bitcoin miner reserves have dipped to their lowest since July 2021, standing at 1.83 million coins. Despite this drop, the leftover balance, valued at around $78 billion, remains considerable. Since early 2021, the total reserve figure has shown relative stability, even though BTC miner reserves have decreased by 22,800 BTC over the past year.
The Bitcoin Miners' Position Index (MPI), which indicates potential upcoming sales by measuring the ratio of total miner outflow to its one-year moving average, started to tick upwards on January 15.
Meanwhile, amidst the anticipated cost increases following the BTC halving event due in April or May, Bitcoin mining firms Riot, TeraWulf, and CleanSpark are reportedly most optimally positioned. Blockchain data from Bitinfocharts revealed a drop in average hash rates to their lowest since October, approximately 400 exahashes per second.
In related news, several large-scale mining operations in Texas have recently down-scaled their operations to conserve energy for the state during the extreme winter weather.
