Miner reserves have been reduced by 8,400 Bitcoins since the beginning of 2024

[NancyDeep]

According to data compiled by CryptoQuant, since early 2024, miners' reserves (the unsold bitcoins held in company-related digital wallets) have decreased by 8,400 bitcoins, dropping to 1.8 million. The last time this level was seen was in June 2021. Analysts suggest that this decline indicates miners are selling tokens. VanEck's Director of Digital Asset Research, Matthew Sigel, has stated that miners have begun selling more tokens to improve their balance sheets and provide funds for increased capital expenditures. This is in response to the difficulty in profitability after the halving of overall rewards in April, making scale even more important post-halving. According to CryptoQuant, since the approval of ETFs, a net total of 3,617 bitcoins has been transferred from miner wallets to exchanges. On February 1st, a net outflow of 13,542 bitcoins occurred, marking the largest single-day outflow since December 2020. What does this imply? What are your thoughts?

[philipma1957]

WELL a simple  look at difficulty  growth shows that the network has added or will add about 100eh over the last 4 weeks.

That is 500,000 s21s  about 1.8 billion In gear. 8400 btc is only 420,000,000 which means that around 1.4 billion  is not f rom reserves of btc.

Most likely some serious investment money is getting sent tk the big farms.  Plus they are adding their own coin.

[Z-tight]

I don't think this is anything to worry about, i know the media will be making up so much fud about this and the weak hands may start selling as a result of this. Take note that the halving will soon happen, and this is going to reduce the block reward miners get for mining a block, so this will generally reduce profitability for miners, miners may be selling their coins because they need to buy more efficient gears to stand better chances of finding a block.

Solo miners may face more difficulty after the halving, especially if they cannot afford enough gears, and they may have to join mining pools or pack up.

[trendcoin]

We must remember that miners are businesses. They are not producing Bitcoins voluntarily. They are businesses and businesses have expenses and they need money to cover their expenses. Also, we don't know when they produce the Bitcoins they sell. There is no such detail in the subject content. They may be realizing profits and this is normal for them as it is for everyone.

[joniboini]

According to CryptoQuant, since the approval of ETFs, a net total of 3,617 bitcoins has been transferred from miner wallets to exchanges. On February 1st, a net outflow of 13,542 bitcoins occurred, marking the largest single-day outflow since December 2020. What does this imply? What are your thoughts?

If this data is true, nothing is really surprising since most people also sold some of their holdings to secure some profits. It is not rocket science, there's no conspiracy even if the data is incorrect. ETF approval has been long-awaited as the start of a new price movement, so selling on the news is not a bad strategy for securing short-term profits. They will likely use that money to improve their farm anyway. It is inevitable. I'd be even more suspicious if a business keep mining or buying BTC even if they are in the red.