Bitcoin [BTC] is trading near levels that miners are probably not happy about, and they will be under pressure if prices move lower. While the market has not reacted yet, miner behaviour could soon play a bigger role in Bitcoin’s next move.
BTC is moving closer to miner stress levels
With Bitcoin trading in the $70K range, attention is on miner profitability. This can affect market behaviour when prices soften. Latest mining data shows that several widely used mining rigs are now operating near their shutdown or break-even levels at current prices.
For many newer mining machines, especially popular Antminer models, profits are getting very small as electricity costs rise. This doesn’t mean miners will switch off their machines right away, but it does show that running them is becoming harder.
When mining earns less money, some miners may need to change their plans. This can include selling some of their Bitcoin or turning off older, less efficient machines.
Miners move BTC to exchanges
With building pressure, miners sent around 175,000 BTC to Binance in January; a much higher level than what it’s usually like during calmer times.
These transfers were not steady either. On several days, miner inflows jumped sharply, with close to 10,000 BTC moved in a single day.
This activity picked up while Bitcoin was trading near $95,000, before prices later fell toward $78,000 by month-end.
Sending BTC to exchanges doesn’t always mean it’s being sold right away, but it does add more supply to the market. That extra supply can quickly turn into selling pressure with weak demand.
