2024

Bitcoin

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<p class="is-style-lead">Bitcoin miners parted with more than 10,000 Bitcoin on Jan. 17, marking the largest daily decline in their reserves in over a year.</p>
<p>The data, sourced from on-chain analytics firm CryptoQuant, indicates that miner reserves plummeted by 10,233 <a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a> representing an amount valued at approximately $450 million.</p>
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   <p lang="en" dir="ltr">🚨 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> Miners in Selling Mode: Recent on-chain data from <a href="https://twitter.com/cryptoquant_com?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@cryptoquant_com</a> indicates a substantial increase in selling activity by <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#BTC</a> miners. In just the last 24 hours, they've offloaded nearly 10,600 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BTC</a>, valued at approximately $455.8 million! <a href="https://t.co/JEtasWfR6N" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/JEtasWfR6N</a></p>— Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1747580480868819313?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">January 17, 2024</a>
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<p>Miners typically alternate between phases of hoarding and selling Bitcoin. A <a href="https://blog.bitfinex.com/wp-content/uploads/2023/08/Bitfinex-Alpha-67-1.pdf" target="_blank" rel="noopener noreferrer nofollow">report </a>from Bitfinex last year indicated that miners had been accumulating Bitcoin since mid-2023, when prices and profitability were less favorable.</p>
<p>However, with recent months witnessing <a href="https://crypto.news/bitcoin-miners-transaction-revenue-400-percent-2023/" rel="noopener noreferrer nofollow">a rise in prices and profitability</a>, miners have transitioned to a <a href="https://crypto.news/miners-sold-more-bitcoin-than-minted-in-october/" rel="noopener noreferrer nofollow">selling phase</a>. These sales typically occur to bolster cash flow or take advantage of higher prices during market rallies. Currently, Bitcoin’s price is hovering between $42,000 and $43,000.</p>
<p>Additionally, Bitcoin miner reserves have reached their lowest point since July 2021, now standing at 1.83 million coins. Despite the drop, this amount still represents a significant value of approximately $78 billion.</p>
<p>You might also like: <a href="https://crypto.news/bitcoin-mining-record-breaking-in-2023-facing-challenges-in-2024/" rel="noopener noreferrer nofollow"> Bitcoin mining: record-breaking in 2023, facing challenges in 2024 </a></p>
<h2 class="wp-block-heading" id="btc-hashrate-plummets-by-34">BTC hashrate plummets by 34%</h2>
<p>The crypto industry is also witnessing a downturn in Bitcoin’s hashrate, which has reached its lowest point in several months. The decrease is partly due to miners redirecting power to the grid during extreme winter storms in the USA, a move aimed at supporting crucial services and household heating needs.</p>
<p>Bitcoin’s network, regarded as an effective tool for grid balancing, has seen a 34% <a href="https://explorer.btc.com/btc/insights-hashrate" target="_blank" rel="noopener noreferrer nofollow">reduction in hashrate</a> from a high of 629 EH/s to 414 EH/s. The drop is attributed to the Electric Reliability Council of Texas (ERCOT) imposing electricity usage restrictions on businesses amid the harsh weather conditions.</p>
<p>Despite the latest surge in selling by miners, Bitcoin’s price remains relatively stable. This resilience could be attributed to <a href="https://crypto.news/bitcoin-etfs-surpass-triple-the-combined-daily-volume-of-500-etfs-launched-in-2023/" rel="noopener noreferrer nofollow">significant inflows into Bitcoin ETFs</a>, with nearly $900 million invested in the first four days since their launch. These inflows may be driving strong Bitcoin purchases in the open market.</p>
<p>Conversely, stocks of Bitcoin mining companies have not fared as well, underperforming after their strong rally in 2023. However, a recent research report from Bernstein, published on Jan. 15, <a href="https://www.cnbc.com/2024/01/16/buy-the-dip-in-these-bitcoin-mining-stocks-over-the-next-two-months-bernstein-says.html" target="_blank" rel="noopener noreferrer nofollow">suggests </a>that current weaknesses in mining stocks may present an investment opportunity.</p>
<p>The report identifies two key challenges for these stocks following the approval of spot Bitcoin exchange-traded funds (ETFs): reduced investor interest in utilizing them as a proxy and the impact of lower Bitcoin prices, which could lead to further underperformance.</p>
<p>Read more: <a href="https://crypto.news/bernstein-predicted-bitcoins-growth-to-150k-by-2025/" rel="noopener noreferrer nofollow"> Bernstein predicted Bitcoin’s growth to $150k by 2025 </a></p>

Bitcoin miners offload over 10,000 BTC in single day, largest drop in over a year

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