Bitcoin Miners Sell As Mining Revenues Come Under Stress

    Data shows Bitcoin miners have been selling in recent weeks as their revenues have come under stress due to the struggling price of the crypto.

    Bitcoin Miners Are Currently Selling An Average Of 3.3k BTC Per Month

    As per the latest weekly report from Glassnode, miners had been accumulating during the initial drawdown from the all-time high, but recently they have broken out of the trend and started distributing.

    The relevant metric here is the “miner net position change,” which measures how much Bitcoin exited or entered wallets of miners on any given day.

    When the value of this indicator is positive, it means the miner reserve is currently observing an increase in its value.

    Such a trend, when prolonged, can be a hint that miners are accumulating at the moment. Naturally, this can be a bullish signal.

    On the other hand, a negative value suggests miners are withdrawing a net amount of coins from their wallets right now.

    Related Reading | Bitcoin Fees Indicator Shoots Late Bear Market Signal

    Usually, miners transfer coins out of their reserve for selling them at exchanges. So, such values can be bearish for the crypto’s price.

    Now, here is a chart that shows the trend in the Bitcoin miner net position change over the last few years:

    Bitcoin Miner Net Position Change

    The value of the indicator seems to have been negative recently | Source: Glassnode's The Week Onchain - Week 23, 2022

    As you can see in the above graph, the Bitcoin miner reserve was observing positive change for a few months following the decline from the all-time high.

    However, as the price continued to struggle, the trend started to shift. In the last few weeks, miners have distributed a peak amount of 5k to 8k BTC per month.

    Related Reading | JP Morgan CEO Says More Pain Ahead For Bitcoin, Ethereum, Cardano Investors

    One of the main reasons behind this change is the struggling miner revenues during the last few months. This is illustrated by the Puell Multiple chart below:

    Bitcoin Puell Multiple

    Looks like the value of the metric has been going down in recent months | Source: Glassnode's The Week Onchain - Week 23, 2022

    The Puell Multiple measures how the current USD price of Bitcoin compares with its 365-day average value. During early bull stages, the indicator’s value remains between 0.6 and 1.5.

    The lower the value of the metric gets, the more miner revenues come under stress. Historically, values lower than 0.6 have accompanied miner capitulation events.

    BTC Price

    At the time of writing, Bitcoin’s price floats around $29.4k, down 7% in the last seven days. Over the past month, the crypto has lost 18% in value.

    Bitcoin Price Chart

    The price of BTC looks to have sharply plunged down over the past day | Source: BTCUSD on TradingView
    Featured image from, charts from,

    Source link

    Latest stories

    - Advertisement -

    You might also like...