Bitcoin hits 4-month low, yet miners keep holding – Why?

• Bitcoin miners continued to hold onto their mined BTC.
• BTC has declined by 7.58% over the past day to hit a 4-month low, at press time.

Bitcoin [BTC] experienced a sharp decline hitting a 4-month low of $79060, and was trading at $79526, at press time. This marked a 7.58% decline in daily charts.

Despite the strong downward pressure, with most sellers strongly active, Bitcoin miners remain indifferent to the prevailing trend.

Bitcoin miners are not selling

According to CryptoQuant, miners are not selling, and they continue to hold to their mined holdings.

As such, since December 2024, all Bitcoin miners have started accelerating their mined Bitcoins. Thus, the miner’s reserve has not changed nominally from December 2024.

Besides that, Miner Reserves are not affected significantly as It seems miners are gathering their Bitcoin.  When BTC prices spiked, miners turned to selling to maximize profits and support operational costs.

However, since December, after Bitcoin did ATH mining withdrawing transactions have largely decreased.

This miner behavior is further evidenced by the fact that the Miner Position Index (MPI) has declined from 2.2 to hit the negative zone around -0.027.

When MPI drops to negative, it suggests that miners are not aggressively selling and their outflows are lower than historical averages.

Thus, miners are holding their assets instead of selling them despite the prevailing market conditions.

This miner behavior is evident through the declining Miner-to-Exchange Flow (total). It has dropped consistently over the past four days from 21k to 3.3k BTC.

This decline has occurred during days when BTC has experienced the most losses. This suggests that as prices continue to drop, miners are avoiding selling and are strategically offloading for operational needs.

This strategic offloading is evident through the Puell multiple, which remains above 0.5 but below 2. It has declined to 1.1, suggesting miners see a healthy market without extreme miner behavior.

Thus, selling activity from the mining pool remains moderate.

When miners behave like this, it suggests they feel the price has declined to unsustainable levels for selling. They view holding as a better option.

What it means for BTC

While miners are not selling, it does not mean they are bullish. The current behavior suggests Bitcoin prices have dropped to unsustainable levels for selling. Thus, miners are holding Bitcoin out of necessity.

However, low selling pressure from miners benefits BTC. Reduced selling will reduce pressure on prices, allowing room for recovery.

Since Bitcoin is still in a downtrend, more losses may occur before miners’ behavior positively affects prices. BTC could drop to $76,800. For a recovery, BTC must first reclaim $86,000.