There is an increasing concern in the cryptocurrency market as Bitcoin miners begin to sell off at a remarkable speed. On July 15, the Bitcoin market witnessed miners dispatching a substantial amount of 16,000 Bitcoin to exchanges in a single day. This is the highest recorded since April and raises doubts about the sustainability of the ongoing rally.
Data from CryptoQuant indicates that these daily outflows have exceeded previous highs, hinting that miners are capitalizing on recent market gains. Such an influx in supply might affect the prices temporarily.
Record Miner Sales
Reports from CryptoQuant reveal that the leap to 16K Bitcoin was driven by miners’ intent to secure profits following Bitcoin’s recent surge. This surge in Bitcoin miner sales is the highest since April with the majority of it directed to exchanges as Bitcoin reached a new all-time high.
Earlier this year, during the price rise from $75K to just above $100K, miners unloaded approximately 17K Bitcoin in April alone. Now, as prices push past $120K, they have embarked on another round of sell-off.
Miners typically sell when their operational costs are met and they stand to gain sizeable profits. However, when all miners sell simultaneously, it can induce market instability.
Mid-Tier Holders Also Unload
Large miners aren’t the sole participants in this sell-off. Wallets holding between 100 and 1,000 Bitcoin have reduced their balances from 68K Bitcoin to 65K Bitcoin since mid-June, resulting in a decrease of about 3K Bitcoin in just a few weeks.
During the April rally, this same group sold approximately 5K Bitcoin before reverting to buying mode when prices stabilized in a range. Currently, they represent a significant source of additional supply as the latest rally catches their interest.
Exchange Inflows Rise
Simultaneously, the total amount of cryptocurrency sent to exchanges jumped from around 13K Bitcoin per day to about 58K Bitcoin this week. This fourfold increase indicates a rush of profit-seekers eager to unload coins.
At the time of writing, Bitcoin was trading at $118,000, down by 0.3% in the past 24 hours, according to data from CoinMarketCap.
