Miners Turn to BTC Sales 

Bitcoin (BTC) has failed to maintain its upward momentum over the past two weeks. Increasing fear and volatility in the crypto market have made it difficult for BTC to hold onto its support levels. During this period, miners have gradually begun withdrawing from the market. Mining activities are largely dependent on energy prices. Geopolitical developments in the Middle East or the removal of electricity subsidies in some countries have made mining operations more costly. 

Especially in energy-intensive mining hubs like Kazakhstan and the United States, rising electricity costs are forcing small and medium-sized miners out of the market. 

According to CryptoQuant data, the Bitcoin miner reserve has decreased by 0.022% on a seven-day moving average. This decline indicates that miners are preparing their coins for sale. 

As seen in the chart, the Bitcoin Miner Profitability Sustainability metric has dropped sharply into the red zone, indicating that miners’ revenues have declined relative to network difficulty. 

Miner Reserves Are Falling 

The BTC miner reserve measures the amount of coins miners hold in their wallets. A decrease in the reserve signals that miners are moving these coins to exchanges in preparation for selling. This usually indicates a bearish outlook for future prices. 

Another key indicator pointing to increased selling pressure from miners is the Miners’ Position Index (MPI). This index has risen by 55% over the past three days. MPI measures the ratio of coins transferred by miners to exchanges relative to the one-year average. This surge confirms the potential selling pressure on BTC. 

This wave of selling from miners and general market uncertainty continues to exert negative pressure on BTC. A period that requires caution for investors is currently unfolding. 

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The post Bitcoin Miners Start Selling: A Signal of BTC Price Drop?  appeared first on Coin Engineer.