Data shows that bitcoin miners have been selling in recent weeks as their revenue has come under pressure due to the struggling price of cryptocurrencies.
Bitcoin miners are currently selling an average of 3.3k BTC per month
According to a recent weekly report from Glasnood, miners were accumulating during the all-time high to early drawdown, but recently they have come out of the trend and started delivering.
The relevant metric here is “Money Net Position Change”, which measures how much bitcoin has left or entered miners’ wallets on a given day.
When the value of this indicator is positive, it means that the mining reserve is currently noticing an increase in its value.
Such a trend, if prolonged, could be an indication that miners are accumulating at the moment. Naturally, this could be a bullish signal.
On the other hand, a negative value indicates that miners are withdrawing net amount of coins from their wallets at the moment.
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Typically, miners transfer money from their reserves to be sold in exchange. Thus, such a value can be bearish for the price of crypto.
Now, here is a chart showing the trend of Bitcoin Minor net position changes over the last few years:
The value of the indicator seems to have been negative recently | Source: Glassnode's The Week Onchain - Week 23, 2022
As you can see in the graph above, the Bitcoin Minor Reserve has been witnessing a positive change for several months after falling from an all-time high.
However, as price struggles continue, trends begin to shift. In the last few weeks, miners have distributed a maximum of 5k to 8k BTC per month.
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One of the main reasons behind this change is the revenue of the struggling mines over the last few months. This is illustrated by the following Puel Multiple Chart:
Looks like the value of the metric has been going down in recent months | Source: Glassnode's The Week Onchain - Week 23, 2022
Puell Multiple measures how Bitcoin’s current USD price compares to its 365-day moving average price. In the early stages of bulls, the value of the index is between 0.6 and 1.5.
The lower the metric value, the more mining revenue will come under pressure. Historically, values less than 0.6 have been associated with mining capitulation events.
At the time of writing, the price of Bitcoin is about 29.4k, down 7% in the last seven days. Last month, the crypto price lost 18%.
The price of BTC looks to have sharply plunged down over the past day | Source: BTCUSD on TradingView
Featured image from Unspash.com, charts from TradingView.com, Glassnode.com