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Miners Are Selling BTC While Bitcoin Sets New Records! Is China Behind the Sales Again?

source-logo  en.bitcoinsistemi.com 29 February 2024 13:28, UTC

The leading cryptocurrency, Bitcoin, is currently at $62,500 while reaching a record step by step. At this point, while BTC has increased by approximately 12% in the last two days, expectations are focused on further increases.

While BTC rose from $ 50,000 to over $ 64,000 in a short time, miners also accelerated their BTC sales.

According to data from Galssnode, the number of BTC held in wallets connected to Bitcoin miners has fallen to the lowest level since mid-2021.

At this point, Glassnode data shows that the estimated number of BTC held in wallets connected to miners has dropped by 8,426 BTC ($530 million) since the beginning of the year, to 1,812,482 BTC.

The decline in the number of BTC started in the second half of October 2023, when miners held 1.83 million BTC.

Commenting on this decline in the number of BTC, Toronto-based cryptocurrency platform FRNT Financial said that miners can use the proceeds from the sale of BTC to purchase more efficient equipment to increase their profitability after the halving and thus reduce operating costs.

FRNT Financial said in a news release sent to Coindesk:

“Bitcoin miners may be tempted to sell to gain a better position before the halving.

At this point, miners may be selling BTC to buy more efficient mining equipment due to the new economic model that the halving will bring.

Apart from purchasing equipment, they may sell BTC because they cannot produce Bitcoin during the long dry season in southwestern China, which generally extends from October to March/April.”

*This is not investment advice.