Bitcoin: ‘These miners no longer care about the price’ – Analyst

• The analyst claims that the impact on the price of BTC by miners has decreased.
• However, total mining supply exceeded $100 billion, hence a key price driver.

bitcoin [BTC] returned to its three-month lows near $60,000 amid compound negative sentiment stemming from several factors.

Market observers have cited macroeconomic uncertainty, the Bitcoin miner crisis and oversupply from various entities, including planned payments from Mt. Gox.

However, one analyst, Fred Krueger, had downplayed

The impact of Bitcoin miners on BTC price action based on how much top miners hold and monthly supply. He said,

“These miners no longer care about the price of Bitcoin. The top 5 together hold 34K BTC. Even if they sold half of everything they hold, that would only be $1 billion, or 0.1% of the asset’s value. In terms of new supply, these 5 generate 2K BTC per month. It doesn’t matter anymore.”

No, BTC miners are still important

Marathon Digital, Clean Spark, and Riot Blockchain are among the top public BTC miners by market cap. However, other analysts disputed Krueger’s argument.

One of them, James Van Straten, stressed that most of the selling pressure on miners came from unprofitable private miners.

“Public miners only have 20-25% of the hash rate. Many private companies that own BTC are spending or underestimating BTC. This is one of the main reasons why BTC struggles after every halving.”

According to Straten, the total supply held by miners was a staggering 1.8 million BTC, worth around $109.8 billion at current market prices.

The analyst added that despite a decline in the total supply held by miners, the staggering amount was still “consistent selling pressure.”

AMBCrypto’s analysis of the total BTC mining reserve confirmed Straten’s opinion. The metric had fallen to 1.8 million BTC, which was in line with the lows seen in 2021.

A recent report from AMBCrypto established that the flow of BTC Miner to Exchange has decreased, indicating that there is less BTC on exchanges for sell-offs.

However, this also meant that future price increases would cause miners to choose to sell their assets and make higher profits.

Another analyst, Willy Woo, also maintained that miners still matter.

“If you strip that away, you get the real long-term supply and demand: new investors, OG sellers, miners impulsively selling new supply. Turns out they still matter.”

Meanwhile, miner capitulations were far from over and hash rates remained low. One user noted that the current capitulation was the longest since crypto winter 2022.

“Hashrate continues to fall. This is now the longest capitulation of #bitcoin miners since the bottom of the 2022 bear market.”

Historically, BTC prices recover every time hashrates increase. If this trend continues, it could reinforce the idea that miners still have a say in BTC prices.

This is an automatic translation of our English version.