Are Bitcoin Miners Booking Profits As BTC Price Hits $123K- Is A Sell-Off Ahead?

A sharp spike in the Miners’ Position Index (MPI) earlier this week raised concerns about potential selling pressure from Bitcoin miners. However, a closer look at on-chain data reveals a detailed take on miner’s behavior. Could this shift in miner activity signal that the BTC bottom is in?”

MPI Surge Sparks Profit-Taking Speculation

The MPI, which tracks the ratio of miner outflows to their one-year moving average, briefly crossed 2 in mid-July 2025. A value above 2 indicates that miners sold their holdings as BTC price made new highs. Historically, such situations have preceded market corrections due to large-scale miner selling.

When miners send more BTC to exchanges, especially at levels above their historical average, they’re often preparing to sell, aiming to lock in profits when prices are high.

• Exchange Inflows Align with MPI Readings

Binance recorded a net inflow of nearly 6,000 BTC between July 12 and July 14, coinciding with Bitcoin’s price shooting up to a new all-time high of $123,091.

This inflow could indicate massive profit-taking. However, such moves are not always bearish in nature. Some of the BTC may be earmarked for arbitrage, derivative hedging, or over-the-counter transactions but not necessarily market dumping.

Will Miners Book Profits?

Although the MPI index surged past the key level of 2, it was immediately followed by a steep decline. In fact, this has been a recurring pattern. Previous spikes in MPI, including those in late 2024, February 2025, March 2025, and June 2025, were typically followed by either a temporary price dip or stabilization, not sustained selloffs.

The reversal reveals that while some miners may be taking profits, they are doing so selectively and in smaller batches. It also indicates that the market may be absorbing these sales without serious bleeding. In other words, miners may not feel financial pressure . With Bitcoin prices still well above the average cost of production, many may prefer to hold out for even better margins.

Sentiment Frothy, But Long-Term Trend Intact?

Social metrics from Santiment revealed that as Bitcoin touched $123.1K, over 43% of all crypto-related discussions centered on BTC, a clear sign of euphoric retail interest. While this signals strong mainstream momentum, it also hints at a short-term top, especially with “FOMO” sentiment peaking.

Meanwhile, macro developments rattled markets. US President Donald Trump’s announcement of potential 100% tariffs on Russia caused risk-off flows across financial markets, dragging Bitcoin below $120,000.

As per CoinMarketCap data, BTC is currently trading at $117,705, down from its intraday high, although still up 12% in the past month.