Bitcoin (BTC) Miners Sell Their Coins, Signaling Market Uncertainty

Bitcoin (BTC) miners have adopted a cautious approach, offloading some of their coins for profit. On-chain data reveals a steady decline in miner balances.

Bitcoin (BTC) miners have been quietly offloading their coins for profit, according to on-chain data.

A close examination of miner coinages reveals a steady decline since the start of September. This has sparked speculation among crypto enthusiasts, given that miner selling is usually viewed as a bearish indicator.

Bitcoin Miners Sell Holdings

Bitcoin miner balances have been declining gradually since September 2, according to data from Glassnode. This metric tracks the total number of coins held by miners on the BTC network.

Presently, 1.8 million BTC, valued at roughly $99 billion at current market prices, are held in miner addresses.

A decrease in miner balances usually indicates that miners are selling their holdings, often due to low profitability. However, the ongoing selloff has occurred despite a spike in total miner revenue from transaction fees and block rewards.

According to Glassnode, total miner revenue has increased by 15% over the past two days, even as Bitcoin’s value continues to fall. Currently trading at $55,659, BTC has lost nearly 5% of its value in the last seven days. This suggests that while miners are earning more, they might be offloading their holdings due to broader market concerns.

A simpler explanation for the uptick in coin distribution among BTC miners as their revenue surges is profit-taking. With BTC struggling to break above the $60,000 mark, miners may be selling some of their holdings to ensure liquidity or cover operational expenses.

BTC Price Prediction: Market Participants Afraid

The negative weighted sentiment surrounding Bitcoin since the miner selloffs began adds to the market uncertainty. Currently, this sentiment metric, which measures the overall mood of the market, stands at -0.49.

A value below zero indicates that most social media discussions are driven by negative emotions, such as fear, uncertainty, and doubt (FUD).

This is further supported by the Fear and Greed Index, which shows that the market is in a state of fear. It suggests that BTC holders are risk-averse and may be more likely to sell their coins in the near term.

If selling pressure intensifies, Bitcoin (BTC) risks falling to $55,246 in the short term. If this support level fails to hold, the price could drop further, potentially slipping below $50,000 to trade around $49,516.

This decline would mark a significant downturn, heightening market concerns.

However, a shift in market sentiment from negative to positive may cause the coin to retest support at $58,790. If the retest succeeds, the coin’s next price target is $61,655.

The above is the detailed content of Bitcoin (BTC) Miners Sell Their Coins, Signaling Market Uncertainty. For more information, please follow other related articles on the PHP Chinese website!