Bitcoin

Bitcoin’s market dynamics are shifting, reducing the impact of miner sell-offs on BTC prices. Recent data indicates that Bitcoin ETFs have experienced a daily net inflow of 3,000 BTC over the past two weeks, significantly outpacing the daily <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/">production</a> of 450 BTC. This influx of demand from ETFs is 6.76 times greater than the new Bitcoin supply, according to <a href="https://x.com/Smidnico/status/1795506500477092261">Smidnico</a>. 
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Public <a href="https://ultramining.com/news/en/blockstream-aims-for-bitcoin-profit-with-mining-rig-investment-ahead-of-2024-halving/">mining companies</a>, once significant influencers of BTC price through their holdings, now play a lesser role. <a href="https://ultramining.com/news/en/marathon-digital-to-boost-energy-efficiency-with-s19-xp-miners/">Marathon</a> Digital (MARA), the largest public miner by <a href="https://ultramining.com/news/en/rising-mining-difficulty-squeezes-bitcoin-miners-sparks-accumulation-among-whales/">Bitcoin holdings</a>, possesses 17,613 BTC. This amount is only 6.1% of the holdings of Grayscale (GBTC), which leads with 289,041 BTC. Other major holders include IBIT with 287,171 BTC, MSTR with 214,400 BTC, and FBTC with 161,542 BTC. 
If mining companies like Hut8 or <a href="https://ultramining.com/news/en/riot-platforms-to-boost-efficiency-with-midas-immersion-coolings/">Riot</a> Platforms were to sell all their Bitcoin holdings, the robust demand from ETFs could absorb this sell pressure quickly. Hut8 holds 9,110 BTC, and Riot Platforms holds 8,872 BTC. In contrast, the field of BTC holders has dramatically changed, with ETFs emerging as major buyers. 
The Bitcoin network <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/">hashrate</a> has also marked new highs, rebounding to 660 EH/s on a 7-day moving average after an initial drop post-<a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/">halving</a>. This suggests that the halving’s impact may be short-lived. Furthermore, the network difficulty has become less volatile compared to previous halving events, despite significant nominal hashrate changes. 
As the market evolves, Bitcoin’s price has shown resilience, surpassing $70,000 on May 20th, recovering from a 23.4% decline. The reduced influence of miner sell-offs and the increasing role of ETFs in absorbing supply are contributing factors to this recovery. With Marathon Digital holding only a fraction of Bitcoin compared to major ETFs, the potential for miner sell pressure to affect prices appears to be diminishing. 
This shift in market dynamics underscores the growing influence of institutional investors and ETFs in stabilizing Bitcoin’s price, while traditional factors like miner sell-offs become less significant.

ETFs Absorb Miner Sell Pressure as Bitcoin Price Shows Resilience

Ultramining_Eng

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