By George Ward
Miners See Green Amid BTC Price Struggles
Data from Glassnode, a prominent on-chain analytics firm, reveals that Bitcoin miners are in profit as the price of BTC continues to hover around $43K. With the year ending, the recent reports shed light on a persistent pattern of big sell-offs by Bitcoin miners throughout the year.
On-chain data shows that these miners have been steadily decreasing their Bitcoin amount since the middle of October. According to recent Glassnode data, there was a decrease of 700 BTC in miner wallets within twenty-four hours on December 28.
Since reaching a peak on October 22, miners’ BTC balances have reduced by up to 12,700 BTC due to this selloff trend. This situation is weird, given that over this period, the value of BTC/USD increased from $30,000 to approximately $45,000 before stabilizing in the last few weeks.
BTC/USD Consolidation
The relevance of this miner activity on the possibility of ongoing bullish momentum was brought to light by a well-known trader on the X social media platform. According to the seasoned trader, miners’ operations may influence the potential for a continuing positive trend.
He underlined the significant impact of lower balances by describing them as “substantial.” He did this by citing numbers from CryptoQuant. In this fourth quarter, miners have recorded a significant increase in revenue due to rising fees and a surge in BTC’s price, which reached its highest level since April 2022.
Charles Edwards, the creator of Capriole Investments, a quantitative fund that invests in digital assets, including Bitcoin, investigated the cost structures of these types of investments. He opined that his studies revealed that mining is one of the most profitable industries today. Edwards summarized the situation in a thread he made on X titled: “Bitcoin miners are absolutely printing.”
Rooting For Next Year
Meanwhile, the focus of all crypto market participants is on the upcoming block subsidy halving. The impending decrease, which market participants have been anticipating, is often a crucial turning point in the price of BTC.
Filbfilb, a co-founder at DecenTrader, believes miners will accumulate Bitcoin in preparation for the imminent reduction of block rewards. In considering the significance of the April halving, Edwards stressed that this event is crucial in BTC’s and the altcoins’ price actions.
Accordingly, he predicts that a significant change will take place in 2024. Edwards boldly asserts that the halving event will further strengthen BTC’s position as the leading digital asset in the world. Meanwhile, analysts believe there has been a lot of strategic maneuvering within the Bitcoin community due to the expected reduction in block rewards.