According to the latest on-chain data, Bitcoin miners refuse to offload their BTC holdings despite profitability being historically low.
Firstly, Alphractal highlighted low on-chain activity in this cycle as one of the reasons behind the significant decline in miner revenues. As a result of the reduced activity, the total transaction fees paid on the Bitcoin network have dropped to their lowest levels since 2012.
Furthermore, Alphractal revealed on X that the Bitcoin hash rate volatility has reached new all-time highs. This basically implies that the network is witnessing the highest hash rate fluctuations or changes in its history.
The blockchain analytics firm added:
This is likely caused by large mining operations shutting down ASIC machines, possibly due to falling revenues and low network demand.
Despite the network revenues and the high mining difficulty, selling pressure from miners has remained at low levels. As exhibited by the low Miner Sell Pressure metric, this indicates that miners are not aggressively offloading their holdings for profit.
Alphractal admitted that the low selling pressure from miners is a positive sign, especially for the price of Bitcoin. The blockchain firm noted the possibility of some mining pools scaling down their operations in response to the decreased activity on the Bitcoin network. “As BTC trades above $107K, we may simply be witnessing miners reallocating their hash power to adapt to the current demand,” Alphractal added.
As of this writing, BTC is valued at around $107,375, continuing its sideways movement with a mere 0.3% increase in the past 24 hours.
