- An analyst believes BTC could soon be facing huge sell pressure from miners.
- Data from Glassnode indicated that miner revenue sent to exchanges had reached a new ATH of 315%.
- BTC’s price was able to climb by 0.56% in the past 24 hours, which left it trading at $26,401.61.
One significant challenge currently facing Bitcoin’s (BTC) supply dynamics, which seems to be receiving limited attention, is the escalating selling pressure from miners. According to a post shared on X (formerly Twitter) by analyst Miles Deutscher earlier today, there is a combination of factors contributing to BTC’s dilemma.
One of #Bitcoin's biggest supply headwinds right now (that no one is taking about) is the increasing miner sell pressure.ATH hash rates, peak difficulty + rapidly rising energy prices have combined to heavily affect mining profitability.With rewards set to be cut in half via… pic.twitter.com/HlL2nuendj— Miles Deutscher (@milesdeutscher) September 28, 2023
Some of the issues include the all-time high (ATH) hash rates, the highest level of mining difficulty, and the rapid increase in costs, all of which have significantly impacted the profitability of mining operations. As the next halving event draws closer, the analyst believes that miners may now be compelled to sell their BTC holdings to bolster their capital.
There are already some observable signs of this trend, as miners are sending record amounts of BTC to exchanges, further increasing the selling pressure in the market. The analyst’s post included data from Glassnode, a blockchain data and intelligence provider, which indicated that miner revenue sent to exchanges had reached a new ATH of 315%.
However, over the past 24 hours, BTC’s price was able to climb by 0.56%, which left the market leader trading hands at $26,401.61. In addition to this, BTC’s 24-hour trading volume surged by more than 73% and, as a result, settled at around $12.65 billion at press time.
Although BTC’s price slipped by just over 2% in the past seven days, it still secured a 1.46% increase over the past month of trading. Meanwhile, the market capitalization for the cryptocurrency king amounted to $514,779,009,418.
Despite its price going up over the past day, BTC’s technical indicators still suggest that there is strong sell pressure present for the market leader. TradingView indicated in their technical overview for BTC that its oscillators were in neutral territory, but its Moving Averages were still in “sell” territory.
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