Bitcoin Miners’ Selling Pressure Drags BTC Price Lower as Analysts Predict Recovery
Bitcoin recovered slightly over the weekend, rising to around $27,360, but the asset remains under pressure near its recent lows. According to data from market analytics firm CryptoQuant, the latest decline may be tied to intensified selling from Bitcoin miners.
Miners Begin Selling Again
CryptoQuant analyst BaroVirtual reported that Bitcoin miners have been reducing their holdings significantly since May 5, with the miner net position turning negative by May 9. This metric tracks whether miners are accumulating or distributing their Bitcoin, and the current trend suggests an ongoing sell-off.
Data indicates that miners accumulated Bitcoin between mid-March and mid-April, a period that coincided with BTC’s rise above $30,000. However, as miner reserves began to shrink again, Bitcoin’s price fell sharply, dropping from over $30,000 to below $27,300 within just a few days.
This selling pressure persisted through mid-May, ultimately driving BTC to a multi-month low of $26,260 on Friday.
Fee Revenue Surge From BRC-20 Tokens
Despite the sell-off, miners recently enjoyed a surge in revenue during the BRC-20 token craze. This new wave of Ordinals-based Bitcoin inscriptions brought NFT-like and tokenization activity to the Bitcoin blockchain, temporarily increasing transaction fees to levels not seen in years.
On May 8, average Bitcoin transaction fees spiked to $30, offering miners substantial rewards beyond the standard 6.25 BTC block subsidy. However, as network activity cooled and fees normalized, miners’ selling resumed.
Signs the Selloff May End Soon
CryptoQuant analysts believe that the current miner behavior could soon shift. According to BaroVirtual, the net position values are now in a range where Bitcoin has historically rebounded.
“Currently, the miner net position values are in the zone where Bitcoin bounced off in previous times, and the local uptrend continued,” the analyst explained. “It can be assumed that miners will slow or cancel sales if Bitcoin hits around $24,000.”
Outlook for Bitcoin
While short-term sentiment remains cautious, some analysts see longer-term optimism. In an earlier interview with CryptoPotato, CryptoQuant researchers projected that Bitcoin could revisit its all-time high of $69,000 by early 2024, driven by institutional accumulation expected later this year.
As Bitcoin hovers near key support levels, traders are watching for signs of reduced miner selling and renewed demand—potential triggers for the next upward move.
