Since surpassing the $100K mark, Bitcoin [BTC] miners have increased their selling activity. In the month of December alone, miners offloaded 140K BTC, equivalent to $13.72 billion.
According to Santiment data, this selling spree has reduced the miner balance from over 2 million coins to 1.95 million coins currently.
Bitcoin Holding Strong Above $100K
Despite the significant sell-off, Bitcoin has managed to maintain its position above $100K.
However, the miner sell-off doesn’t appear to be as severe when analyzing the miner outflow metric, which monitors all miner wallets and their transfers to exchanges.
On November 12th, the highest daily miner sell-off was recorded at 25K BTC, but since then, the pressure has been easing, as indicated by the decreasing miner outflows.
It is possible that a large portion of the sell-off occurred through OTC (Over The Counter) markets.
Nevertheless, the overall sell-off in December seemed to overshadow the demand from ETFs. In the last two weeks, BTC ETFs witnessed inflows of $4.9 billion, while MicroStrategy purchased $3.6 billion worth of BTC during the same period.
Excluding Mara Digital and other companies with BTC corporate treasuries, ETFs and MicroStrategy’s BTC acquisitions totaled $8.3 billion in the last two weeks, slightly less than the $13.72 billion supplied by miners.
Considering the intense selling by miners, should investors be worried about their portfolios? To gain perspective, we examined the Puell Multiple.
The Puell Multiple allows users to assess BTC valuation and cycles through the lens of miners. When the metric rises to the upper range, BTC’s value is seen as excessively high.
Conversely, a low Puell Multiple reading indicates that BTC is relatively undervalued.
In early 2024, the metric peaked at 2.4, signaling a local BTC peak at $73.7K. Currently, the Puell Multiple stands at 1.3, with limited room before reaching 2 or the upper band.
Based on the Puell Multiple and miners’ perspective, BTC does not appear to be overvalued or inflated at the moment, though this could change if the metric surpasses 2.
Meanwhile, Bitcoin is consolidating below $102K as investors await the Federal Reserve’s rate decision on December 18th.