Bitcoin Miners Offloaded Holdings as Prices Dropped to $33K

The selling likely contributed to the crypto's decline in price in January.

Feb 9, 2022 at 10:17 a.m. UTC
Updated Feb 9, 2022 at 9:37 p.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

Bitcoin miners sold part of their holdings over the past 30 days after months of accumulation, data from multiple sources show.

  • Miner net position change shows the net change in bitcoin supply held by miner addresses. Red bars indicate periods of sale, while green bars indicate periods of accumulation.
  • The metric decreased by more than 1,660 bitcoins on Saturday and 1,733 bitcoins on Sunday, according to analytics tool Glassnode. This amounts to over $147 million at current prices, according to tracking tool CoinGecko.
  • The weekend’s sale was the first for 2022, after a previous selling period in November.
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Bitcoin miners started offloading positions in the past 30 days. (Glassnode)

  • Over the past two months, miners have been continuously accumulating bitcoin even as prices fell from $55,000 to $35,000, research firm Delphi Digital said in a daily note.
  • “With the weekend pump, miners are starting to offload their BTC holdings as Miner Net Position Change turned negative for the first time in 2 months,” the analysts wrote.
  • The sale over the past 30 days likely contributed to a decline in bitcoin prices, as the asset touched $32,000 in the last week of January. It has since recovered, trading as high as $45,570 on Tuesday.
  • Bitcoin mining is the process of discovering new blocks, verifying transactions and adding them to the Bitcoin blockchain.
  • A miner broadly describes an entity using powerful computing resources to validate the network and earn bitcoin as a reward in return. The upkeep of such systems is expensive, and miners periodically sell holdings to cover costs.
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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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