Bitcoin (BTC) Miners Still Matter Despite Three-Month Lows, Analysts Argue

Bitcoin [BTC] was back to its three-month-long range lows near $60K amidst compounding negative sentiment drawn from several factors.

Bitcoin [BTC] began the week in the red, trading around the $60K level as several factors seemed to contribute to the market downturn.

As covered earlier, a few analysts had downplayed the impact of Bitcoin miners on BTC price action based on the amounts held by top miners and monthly supply. However, other analysts had countered this argument.

Now, fresh data seemed to support the latter claim, suggesting that Bitcoin miners might still play a role in the market.

Bitcoin miners still matter?

Marathon Digital, Clean Spark, and Riot Blockchain were amongst the top public BTC miners. But, as pointed out earlier, they only accounted for around 20-25% of the total hash rate.

Now, according to data from BTC.com, the total BTC supply held by all miners amounted to 1.8 million BTC. At current market prices, this stash was valued at around $109.8 billion.

Interestingly, despite a decline in the total supply held by miners, this staggering amount still served as a “constant sell pressure.”

An analysis of the total BTC miner reserve also confirmed Straten’s observation. The metric had dropped to 1.8M BTC, matching the lows observed in 2021.

Source: CryptoQuant

A recent AMBCrypto report highlighted a decline in the BTC Miner to Exchange Flow, indicating less BTC being forwarded to exchanges for sell-offs.

However, this also suggested that future price upswings would tip the miners to offload at higher profits.

Another analyst, Willy Woo, also maintained that the miners still mattered.

“Strip that away to get the real long term demand and supply. New investors, OG sellers, miners selling new supply in impulses. Turns out they still matter.”

In the meantime, the miner capitulations were far from over, and hashrates remained low. One user noted that the current one was the longest capitulation since the 2022 crypto winter.

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

Source: Look Into Bitcoin

Historically, BTC prices have bounced back whenever hashrates increased. If this trend continues, it could reinforce the idea that miners still have a say in BTC prices.

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