Bitcoin miner outflows soared to an astonishing 48,774 BTC, translating to over $3.2 billion, within a two-day span from February 5 to February 6. This surge in outflows has raised eyebrows in the cryptocurrency community, particularly in light of recent price volatility. However, experts assert that these movements do not necessarily indicate miner capitulation, as per the January disclosures from prominent corporate mining firms.
On February 5 alone, miner outflows hit 28,605 BTC, valued at $1.8 billion, marking one of the largest single-day transfers from miner wallet addresses seen since November 2024. The following day, February 6, saw an additional 20,169 BTC worth $1.4 billion moved, echoing patterns observed in previous spikes.
The timing of these outflows coincided with a notable price drop for Bitcoin, which dipped to $62.2k before rebounding to $66.4k. Such whale transactions amid market fluctuations often garner significant attention, as they may signal potential selling pressure in the market.
Despite the substantial amounts transferred by miner-linked wallets, financial reports from publicly listed mining companies reveal minimal selling pressure. Eight miners, including CleanSpark, Bitdeer, and Hive Digital Technologies, collectively reported a total production of 2,377 BTC for the month, a figure significantly lower than the outflows noted during the two-day period.
For instance, CleanSpark mined 573 BTC but only sold 158.63 BTC in January, while Cango reported mining 496.35 BTC and disclosing a sale of 550.03 BTC. Meanwhile, LM Funding indicated it mined 7.8 BTC without any sales. Other firms, such as BitFuFu and Canaan, did not specify the amounts sold, but projections suggest it would be challenging to match the outflows recorded.
This news arrives at a particularly challenging juncture for miners. Data from Checkonchain indicates that Bitcoin”s floor price has remained below the difficulty regression model since January 26, underscoring the challenges faced by miners as the production cost of one BTC stands at $79.242k, while the trading price hovers around $66.485k.
In an additional development, the Royal Government of Bhutan extended its BTC selloff, transferring 100 BTC to QCP Capital”s WBTC merchant deposit address. The motivations behind this transaction remain unclear, but it suggests potential liquidity management strategies or preparations for sales in liquid markets. Bhutan has been actively involved in state-sponsored BTC mining activities and may be responding to increased selling pressure.
Overall, the landscape for Bitcoin miners is becoming increasingly complex, particularly as the cryptocurrency has experienced a significant decline since peaking at $97,860 on January 14. Since then, the asset has lost more than 30% of its value amid ongoing selling pressure.
