Bitcoin Miners Ramp Up Sales as Market Demand Dwindles, Reports CryptoQuant

Recent analysis from CryptoQuant reveals that Bitcoin miners have significantly increased their selling activities over the past month due to a slowdown in market demand for Bitcoin. This shift is primarily driven by decreased purchases from spot ETFs in the U.S. and a decline in whale activity, signaling a potential downturn in BTC value, according to Cryptopotato.

The data indicates that miners are sending large volumes of Bitcoin to spot exchanges, leading to a market imbalance. This increase in supply without corresponding demand is causing concerns about the ongoing profitability of mining operations, especially after the recent halving event which already reduced miners’ rewards by half.

As miners continue to sell off their Bitcoin to cover operational costs, the decreased demand and increased supply could place further downward pressure on BTC prices. According to CryptoQuant’s head of research, Julio Moreno, the balance of BTC at OTC desks has been rising since reaching a peak in March, while demand has significantly slowed.

This imbalance is also reflected in the financial markets, where the funding rate for perpetual futures has dropped to its lowest this year, indicating a bearish outlook among traders. As a result, the Bitcoin market may see further price corrections, potentially targeting lower support levels in the short term.