Despite Bitcoin gaining support at higher levels and upward momentum, sales continue, contrasting with strong institutional demand. Observers question who is selling Bitcoin and whether they will regret it. Miners, as the oldest and most experienced investors in the crypto space, accumulated significant reserves before exchanges existed, but the professionalization of mining and the advent of publicly traded mining companies have changed the landscape.
Some mining stocks have increased tenfold, surviving the bear market and now enjoying increased profits. Yet, data shows that market whales continue to sell even as Bitcoin prices hover around $43,000.
According to Glassnode, miners have been consistently selling since mid-October, reflecting expectations of a price correction due to historical halving performance. In just 24 hours, miners sold 700 BTC, reducing their balances by 12,700 BTC compared to the local peak on October 22.
During the same period, Bitcoin rose $15,000, breaking resistance levels unexpectedly fast. High costs and operational expenses necessitate miners to generate cash whenever possible, potentially leading to more sales than if they had anticipated such rapid market movements.
Crypto analyst ali_charts suggests that miner activities could weaken the Bitcoin price increase, citing data from on-chain analysis firm CryptoQuant. Meanwhile, Charles Edwards of Capriole Investments indicates that miners are currently profitable, with the best transaction fee earnings since April 2022, thanks to significant interest in Ordinals, boosting profitability this year.
Filbfilb, co-founder of DecenTrader, anticipates miners to stockpile Bitcoin before the block reward halves to 3.125 BTC, which is still four months away. This could indicate a strengthening trend in miner stockpiling behavior prior to the halving event.