A recent analysis by cryptocurrency analysis firm CryptoQuant revealed that selling pressure from Bitcoin miners has reached its lowest level in almost seven years.
This significant drop in selling pressure is reflected in the flow of Bitcoin from miners’ wallets to exchange wallets, which is currently at its lowest level since 2017.
Contrary to popular belief, miners sell BTC all the time. This is how the new Bitcoins arrive on the market. The current sending flow from miners to exchanges is an average of 90 BTC per month, the lowest in years.
Despite low selling pressure, mining revenues have increased in the last three months, reaching the highest levels of the year. This is a positive sign for the Bitcoin market as miners are the only entity in the market that requires ongoing costs. They need to invest in electricity, maintenance and machinery to maintain their operations.
The behavior of miners is always linked to some extent to the price of BTC. The volume of BTC currently held by miners represents approximately 9.40% of the total circulating supply of Bitcoin. In CryptoQuant’s analysis, experts ultimately point to a positive trend in the BTC market, with low selling pressure from miners and increasing revenues.
*This is not investment advice.
