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Highlights
- Bitcoin miners are on a major selling spree
- Bitcoin miner selloffs intensified since spot ETF approval
- Bitcoin price remained resilient and even boasts bullish forecasts
Ki Young Ju, the founder and CEO of the on-chain analytical platform Cryptoquant, revealed startling data indicating a massive transfer of 700,000 Bitcoin (BTC), valued at $35.9 billion. These massive funds were moved to Over-The-Counter (OTC) desks utilized by miners over the past three weeks following the recent approval of the Exchange Traded Fund (ETF).
Bitcoin Miners as Market Facilitators
An interesting development amidst this surge in trading activity is the observed increase in Bitcoin block size. According to an earlier report, the Bitcoin network has experienced a notable 40-50% increase in block size, attributed to heightened network activity driven by Bitcoin’s recent rally.
Ordinarily, an increase in block size often leads to higher transaction fees. However, despite the increase in block size, there has been no major increase in fees, indicating that the increase is mostly driven by the huge volume of BTC purchasing and selling.
700K $BTC has moved to OTC desks used by miners over the past three weeks following spot #Bitcoin ETF approval.https://t.co/beKpUVllNj pic.twitter.com/3F20yAxuX5
— Ki Young Ju (@ki_young_ju) February 22, 2024
Bitcoin mining difficulty has soared to 81.73T, with the network hashrate nearly doubling in the last 12 months from 303 EH/s to an average of 577 EH/s. This surge in difficulty, coupled with the increase in block size and BTC price, adds pressure on miners to sell their BTC holdings to cover operational costs and maintain profitability.
However, the influx of institutional interest following the approval of spot Bitcoin ETFs presents a unique opportunity to capitalize on their strategic position within the ecosystem. By leveraging their substantial holdings of Bitcoin, miners can facilitate large-scale OTC trades, providing liquidity and market access to institutional investors.
In doing so, they stand to benefit from lucrative transaction fees and potentially favorable pricing arrangements. This disposition might account for the large OTC Bitcoin volume as pointed out in the chart shared by Young Ju.
Bitcoin Outlook and Market Trends
Despite concerns surrounding miner selling pressure and the potential impact on BTC price, spot Bitcoin ETFs continue to witness outstanding inflows, with the latest net inflow totaling $631 million.
Experts believe that the BTC price rally will persist, fueled by demand from Bitcoin ETFs and derivatives traders. As of the time of writing, Bitcoin is trading at $51,360, reflecting a 0.96% increase in the past 24 hours, with a market capitalization exceeding $1 trillion.
Despite the Bitcoin miner selling, experts have projected bullish price targets for BTC price with forecasts as high as $301,000 before the coming halving event.
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