Bitcoin miners are selling fast, but here’s why you shouldn’t worry just yet

The price of Bitcoin experienced one of its most significant increases in recent years since November 6, gaining more than $30,000 and breaking out above $100,000 for the first time. As such, some market participants decided to cash in on the profits.

After reports that long-term holders had removed some of their wallets, it is now the turn of BTC miners, whose collective balances have dropped significantly in recent days.

Popular analytics platform Santiment revealed that miners, the backbone of the Bitcoin network, had liquidated more than 85,500 BTC in just 48 hours. The team described this substantial selloff as the “most extreme we’ve seen since late February (2 weeks before the all-time high of $73,000).

Recall that the price of BTC fell in the following weeks during the first quarter of the year and did not break its record until November 6.

While this looks like a warning sign for future BTC price moves, Santiment was quick to reassure the public that the picture is different now.

This is because large bitcoin investors, known as whales and sharks, continue to accumulate the asset. Accordingly, Santiment concluded that the decreasing balance of BTC miners is a “net neutral signal”, at least for now.

⛏️ Bitcoin collective mining balances have been falling since April 2024. However, this latest drop of 85,503 BTC in just 48 hours is the most extreme we’ve seen since the end of February (2 weeks before the all-time high of $73,000). Please note that these portfolios have NOT been… pic.twitter.com/gTQPoS7IzC

— Santiment (@santimentfeed) December 6, 2024

Perhaps the two most important pieces of evidence for this narrative are corporations led by MicroStrategy and American investors, who continue to pour large sums into BTC. MicroStrategy has announced huge purchases of BTC worth nearly $10 billion for the past three consecutive Mondays.

Bitcoin ETFs in the US have enjoyed the period since the US election, and last week did not disappoint, with another couple of billion dollars flowing into the financial vehicles.

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