Bitcoin miner outflows skyrocketed to 48k $BTC worth more than $3 billion between February 5 and 6. However, the massive outflows do not represent miner capitulation according to January disclosures from major corporate $BTC mining firms.
Bitcoin miners moved 48,774 Bitcoin worth $3.2 billion from their wallets between February 5 and 6, according to onchain data. However, the transactions do not automatically reflect miner capitulation or immediate spot market selling. The data accounts for transfers to exchanges, internal wallet movements, and transfers to other entities. Therefore, the miner outflows do not imply that Bitcoin miners were offloading their assets in the open market as the crypto winter continues to unfold.
Bitcoin miner-linked wallets move 48K $BTC, valued at $3.2 billion, in 2 days
Source: CryptoQuant Bitcoin Miner Outflow (Total) All Miners
On February 5, Bitcoin miner outflows spiked to 28,605 $BTC valued at $1.8 billion. The value represents one of the most significant single-day transactions involving miner wallet addresses since November 2024. Miner-linked wallets also recorded another 20,169 $BTC in outflows worth $1.4 billion on February 6, with a previous similar spike occurring on November 12, 2024, as per onchain data.
The spike on February 5 and 6 coincided with Bitcoin’s recent price decline that saw the asset touch $62.2k before recovering to $66.4k. Whale transactions amid market volatility draw significant attention and could signal potential selling pressure.
Despite onchain data showing miner-linked addresses moved massive amounts of Bitcoin over the two days, company documents from publicly listed mining firms do not show heavy selling pressure from miners. Eight miners, including CleanSpark, Bitdeer, Hive Digital Technologies, BitFuFu, Canaan, LM Funding America, Cango, and DMG Blockchain Solutions, have reported a combined production of 2,377 $BTC in their financial statements for the month. However, the figure is far below what was recorded on February 5 and 6.
The mining firms did not sell a substantial amount of Bitcoin in the same period. The total number of $BTC sold by CleanSpark, Cango, and DMG matched only a fraction of the miner outflows registered on either February 5 or 6. CleanSpark reported mining 573 $BTC and selling 158.63 $BTC during January, while Cango mined 496.35 $BTC and disclosed selling 550.03 $BTC.
LM Funding mined 7.8 $BTC and reported that it did not sell any Bitcoin. Other firms like BitDeer, BitFuFu, and Canaan did not disclose the $BTC sold, but, based on projections, it would be difficult to match the outflows recorded on February 5 and 6 with the firms’ records.
Bitcoin miners face pressure as $BTC price slides below production cost
The news comes at a difficult time for miners. According to data from Checkonchain, Bitcoin’s floor price fell below the difficulty regression model, which represents the average production cost of Bitcoin on January 26, and has remained below it since then. The data shows that the cost of producing 1 $BTC is $79.242k, while $BTC is trading at $66.485k at the time of this publication.
The Royal Government of Bhutan extended its $BTC selloff spree by transferring 100 $BTC to QCP Capital’s WBTC merchant deposit address (bc1qt) on Thursday, according to blockchain analytics firm Arkham. Cryptopolitan reported that the motive of the transaction remains unknown; it suggests that the government is potentially engaging in liquidity management or preparing for sales into liquid markets. The Royal Government of Bhutan actively undertakes state-sponsored $BTC mining activities and could be unwinding as a result of increased selling pressure.
According to data from CoinMarketCap, Bitcoin has been in a steep decline since clocking its highest price of the year at $97,860 on January 14. The crypto asset has shed more than 30% since then amid continued intense selling pressure.