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- Bitcoin miners have been selling actively since the price climbed above $34,000.
- Miners have since offloaded over 5,000 BTCs, worth approximately $175 million.
- The miners are preparing for the upcoming Bitcoin halving that will reduce their block rewards.
According to Ali, a famous crypto data analyst on X (formerly Twitter), Bitcoin miners have been selling actively since the flagship crypto climbed above $34,000. In a recent post, Ali noted that the miners have offloaded over 5,000 Bitcoins, worth approximately $175 million, during this period.
Since #Bitcoin surged past $34,000 in late October, $BTC miners have been selling. Over 5,000 #BTC, worth approximately $175 million, have been offloaded since then. pic.twitter.com/liLCm8Xykx— Ali (@ali_charts) November 10, 2023
Ali’s note agrees with multiple reports of Bitcoin miners selling more BTC than they mined in recent weeks. That has raised curiosity among crypto users, many of whom consider the selloff a profit-taking exercise that could precede a drop in the price of the flagship crypto.
Furthermore, TheMinerMag’s data shows that in October, Bitcoin’s liquidation-to-production ratio was 105%, marking a significant increase from the previous three months’ ratios of 64%, 77%, and 77% for July, August, and September, respectively.
Bitcoin Liquidation to Production Ratio Source: TheMinerMag
Bitcoin’s price continued to rise despite significant selling by miners. On Thursday, BTC surged to $37,978, according to data from TradingView. With that move, the pioneer cryptocurrency reached a yearly high and the highest price in 18 months.
Bitcoin Daily Chart on TradingView
Many users suggest that the current Bitcoin selloff by miners is in preparation for the upcoming Bitcoin halving that will reduce their block rewards by half. Hence, they are raising capital through capital sales, a development that could impact market dynamics.
Bitcoin traded for $36,847 at the time of writing, as the price attempted to recover after retracing from the newly established yearly high. The top crypto maintains a bullish outlook, which it has sustained since the middle of October after bouncing off support at $26,545.
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