Nico Smid
Nico Smid 3 minutes reading from Bitcoin

Bitcoin Miner Sell Pressure Forced Many Miners to Sell Their BTC

Last week was eventful to say the least. Bitcoin mining margins were already low but are pushed to the extreme as a consequence of the FTX drama. Various indicators confirm that the price drop forced many miners to sell their BTC. 🧵👇

Miner Reserve shows the of BTC held by the affiliated miners' wallets. The amount of BTC fell significantly, just like in June after the Luna crash. This time reserves were already at low levels before the FTX news broke. Miner Reserve is now at levels last seen since Jan 2022.

Miners' Position Index (MPI): ratio of number of all miners’ outflows in USD divided by 365 days moving average of it. MPI shows that miners are selling more holdings compared to its one-year average. Last week MPI spiked above 2 which only happened on a few occasions this year.

The Miners’ Net Position Change shows the 30d change of the supply held in miner addresses. This indicator flipped red at the end of August but printed the biggest red candle of this bear market in reaction to last week’s events.

Coin Bureau on Twitter

Bitcoin Miner Sell Pressure tracks on-chain data to highlight when Bitcoin miners are selling more of their reserves than usual. The BMSP spiked last week, showing miners have been selling more than they have in almost 5 years.

Charles Edwards on Twitter

Even though the Hash Ribbons don't indicate that we are in a miner's capitulation phase, the squeeze is real. It remains to be seen how long hashrate can keep growing if these market conditions don't change in the coming months.

More details can be found in this week's market update. I also looked at hashrate, difficulty, hashprice, ASIC prices nearing all-time lows, interesting news and podcast!

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News & Insights: FTX Drama Forces Miners to Sell
This post is based on this twitter thread.

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