Cryptocurrency analytics firm Alphractal has revealed that Bitcoin miners moved the highest dollar value in history between November 8 and December 31, 2024.
This unprecedented activity, largely characterized by significant outflows, has contributed to increasing selling pressure in the Bitcoin market as miners’ reserves continue to dwindle.
This trend is due to increased competition in the mining industry. Bitcoin’s hash rate (a measure of computing power used to secure the network) has reached all-time highs, increasing operational costs for miners. To cover these increased costs and maintain profitability within tighter margins, many miners have resorted to liquidating their Bitcoin holdings.
Chart shared by Alphractal showing the melting of miners' reserves. Despite this sell-off, recent data from January suggests a potential slowdown in miners’ selling activity. Alphractal’s analysis suggests that selling interest among miners has waned, possibly signaling a pause in market pressure.
“The coming months will be crucial for assessing how the dynamics of rising costs and declining reserves will affect the price of Bitcoin,” the report said.
*This is not investment advice.
