Charles Schwab Crypto: Bitcoin Miners Reduce BTC Holdings as ‘Miner Price’ Nears $65K

As BTC’s price struggles near $43,000, data suggests that Bitcoin (BTC) miners could be among the largest profit-takers. According to the latest figures from on-chain analytics firm Glassnode, the best crypto sources for 2021 are continuing to offload their holdings.

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Analyst: Bitcoin miners “absolutely printing”

Since mid-October, Bitcoin miners have been reducing their BTC balances on a practically constant basis. In the 24 hours to Dec. 28 — the latest date for which Glassnode numbers are available — the BTC balance in miner wallets declined by 700 BTC, versus a local top on Oct. 22 when miner balances were down 12,700 BTC. Despite BTC/USD rising from $30,000 to near $45,000, popular trader and social media commentator Ali believes the impact of miner activity could be weighing on the odds of bullish price continuation, citing substantial reductions in balances from CryptoQuant.

Mining activity has been highly profitable in Q4, with Ordinals inscriptions spiking fees amid the highest BTC price levels since April 2022. Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, highlighted this in a post on X (formerly Twitter), where he noted that Bitcoin miners are “absolutely printing” according to Capriole data. The accompanying chart showed production costs versus profit margins per Bitcoin.

The Most Impactful Bitcoin Halving

As reported by Cointelegraph, the upcoming block reward halving is generating a lot of attention from market participants, as it is a major milestone in Bitcoin’s development.

Filbfilb, co-founder of DecenTrader trading suite, believes that miners will attempt to stockpile Bitcoin before the block reward drops to 3.125 BTC.

In an interview earlier this year, Edwards referred to the April halving event as the “most important” and a “transition point”. He added that by 2024, Bitcoin will become the world’s most reliable asset and its inflation rate will be lower than gold, making it the best store of value.