Bitcoin’s price experienced one of its most significant surges in the past several years since November 6, gaining over $30,000 and exploding beyond $100,000 for the first time ever. As such, some market participants decided to cash in on profits.
After reports that long-term holders had disposed of portions of their bags, it’s now the turn for BTC miners, whose collective balances have dropped significantly in the past few days.
The popular analytics platform Santiment revealed that miners, the backbone of the Bitcoin network, had liquidated more than 85,500 BTC in just 48 hours. The team described this substantial sell-off as the “most extreme we’ve seen since late February (2 weeks before the then $73K all-time high.)
Recall that BTC’s price tumbled in the following weeks back in the first quarter of the year and failed to break its record until November 6.
Although that sounds like a warning sign for future BTC price movements, Santiment was quick to reassure the public that the landscape is different now.
This is because large bitcoin investors, known as whales and sharks, continue to accumulate the asset. Consequently, Santiment concluded that the declining balances of BTC miners is a “net-neutral signal,” at least for the time being.
Bitcoin’s collective mining balances have been dropping since April, 2024. However, this latest drop of 85,503 BTC in just 48 hours is the most extreme we’ve seen since late February (2 weeks before the then $73K all-time high). Note that these wallets have NOT been… pic.twitter.com/gTQPoS7IzC
— Santiment (@santimentfeed) December 6, 2024
Perhaps the two biggest proofs of this narrative are corporations led by MicroStrategy and US investors, who continue to pour large sums into BTC. MicroStrategy has announced enormous BTC purchases worth almost $10 billion on the past three consecutive Mondays.
The Bitcoin ETFs in the States have enjoyed the timeframe since the US elections, and the past week didn’t disappoint, with another couple of billion dollars entering the financial vehicles.
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