According to data from analytics firm CryptoQuant, Bitcoin miner reserves have declined significantly, falling from nearly 1.862 million BTC to 1.801 million BTC since the start of the current market cycle. This represents a net sell-off of approximately 61,000 BTC by major mining entities.
The selling pressure is attributed to a combination of factors squeezing miner profitability. Revenue from validating transactions on the Bitcoin blockchain has dropped due to a decline in the BTC price and rising energy costs. Bitcoin mining gross margins have fallen sharply from above 90% during the 2021 bull run to around 60% currently. This follows Bitcoin's price dropping as much as 50% from its all-time high of around $126,000 reached in October.
CryptoQuant's data highlights specific sales from major publicly traded miners. Riot Platforms sold an estimated 4,026 BTC, Marathon Digital sold 13,210 BTC, and Core Scientific sold 1,992 BTC. Notably, Marathon Digital (MARA Holdings) reportedly sold about $1 billion worth of Bitcoin in recent weeks, partly to shift focus toward developing AI infrastructure.
Concurrently, key mining metrics reflect the strain. The hash price, a crucial measure of revenue for Bitcoin miners, has hit record lows. Mining difficulty, an indicator of the total computing power dedicated to the network, has also seen sharp declines, suggesting some miners have unplugged unprofitable machines.
Despite the broad sell-off, AntPool has emerged as an exception, with its miner balances seeing an uptick in recent days, indicating selective accumulation amidst the wider distribution trend. Analysts suggest that if Bitcoin's price stabilizes above critical support levels, it could renew miner confidence and lead to a return to accumulation patterns.
