Analyst: Selling Pressure from Bitcoin Miners Eases
Recent data from CryptoQuant suggests a significant decrease in selling pressure from Bitcoin miners, indicating a potential positive trend for BTC and the overall market in the near future.
This shift follows a period where miners were selling off Bitcoin to cover operational costs post-halving event, impacting market declines. The reduced profitability of older mining equipment due to the halving led to increased selling of Bitcoin by miners in OTC transactions.
The Bitcoin halving in April reduced mining rewards, making older equipment less cost-effective. This resulted in a decrease in mining activity and an increased need for miners to sell Bitcoin to sustain operations. Even large corporate mining operations are facing record-low profitability.
Marathon Digital, for instance, sold 1,400 BTC by June 10 compared to 390 BTC in May. However, CryptoQuant’s data now shows a notable decrease in Bitcoin transfers out of miners’ wallets.
If this trend continues, it could potentially boost Bitcoin’s price and trigger a broader market rally.
In other news, UAE-based Bitcoin mining company Phoenix recently announced a $370 million IPO on the Abu Dhabi Stock Exchange, which was oversubscribed. The company’s IPO prospectus sheds light on its operations and financial health.
Phoenix Group operates in proprietary Bitcoin mining, colocation hosting, and ASIC machine distribution, with a hashrate capacity of 13.9 EH/s in North America and the Middle East. For the fiscal year 2023, Phoenix projects total revenue of $247 million and an EBITDA of $172 million.
Despite its focus on mining, Phoenix’s revenue stream heavily relies on hardware sales. In 2022, its computer hardware trading subsidiary contributed $720 million to revenues, with a significant portion coming from distribution agreements with major mining hardware manufacturers Bitmain and MicroBT.
These developments in the mining industry, coupled with the decrease in selling pressure from miners, suggest a potential positive outlook for Bitcoin and the broader market moving forward.
