Selling pressure from Bitcoin miners has decreased, according to a CryptoQuant analyst. This suggests a potential upward trend for BTC. Simply put, we are finally getting ready for the next upward swing.
The market is absorbing the sell-off from miners who offloaded Bitcoin to cover operational costs. Miners have been selling Bitcoin in over-the-counter transactions due to decreased profitability.
The Bitcoin halving in April cut mining rewards from 6.25 to 3.125 BTC. This made older mining equipment less cost-effective. Mining activity decreased and miners needed to sell more Bitcoin to sustain operations.
Large corporate mining operations initially appeared prepared for reduced revenues. However, even big players now face record-low profitability.
Marathon Digital sold 1,400 BTC by June 10, compared to 390 BTC in May. CryptoQuant's data now shows less Bitcoin being transferred from miners' wallets.
Continued absorption of sell-offs could boost Bitcoin's price. This may also trigger a broader market rally, but nobody can be sure about that, at least for now.
The mining industry is seeing significant developments. UAE-based Bitcoin mining company Phoenix announced its $370 million IPO was oversubscribed.
Phoenix Group operates in three areas: proprietary Bitcoin mining, colocation hosting, and ASIC machine distribution. It has a hashrate capacity of 13.9 EH/s.
For fiscal year 2023, Phoenix projected $247 million in revenue and $172 million in EBITDA. Despite its mining focus, Phoenix's revenue relies mainly on hardware sales.
In 2022, computer hardware trading contributed $720 million to revenues, 95.44% of the total. About $715 million came from distribution agreements with Bitmain and MicroBT.