Bitcoin miners have escalated their selling activities since the digital currency surpassed the $100,000 mark. In December, miners offloaded 140,000 BTC, totaling $13.72 billion.
Based on data from Santiment, this selling spree has caused the miner balance to decrease from over 2 million to 1.95 million coins as of the latest figures.
Bitcoin Maintains Stability Above $100K
Despite the increased selling pressure, Bitcoin has shown resilience by holding above $100,000.
Despite this, the miner sell-off does not appear excessively aggressive when analyzing miner outflows – a metric that monitors all miner wallets and their movement to exchanges.
On November 12th, there was a peak daily miner sell-off of 25,000 BTC. However, this pressure has since decreased, as illustrated by the decreasing miner outflows.
It is possible that a large portion of the selling took place through Over The Counter (OTC) transactions.
That being said, the overall sell-off in December surpassed the demand from ETFs. During the last two weeks, BTC ETFs recorded inflows of $4.9 billion. Within the same period, MicroStrategy acquired BTC worth $3.6 billion.
Excluding companies like Mara Digital and others with BTC in their treasuries, the demand from ETFs and MicroStrategy amounted to $8.3 billion in the past couple of weeks. This figure slightly fell short of the $13.72 billion supply from miners.
Considering the intense selling by miners, should investors be worried? To gain some perspective, we turned to the Puell Multiple.
For those unfamiliar, the Puell Multiple is a tool that helps in assessing BTC’s valuation and market cycles from a miners’ viewpoint. When the metric climbs to its upper bounds, BTC’s value is seen as excessively high.
Conversely, a low Puell Multiple reading indicates that BTC is relatively undervalued.
Back in early 2024, the metric peaked at 2.4, signaling a local BTC peak at $73,700. Currently, the Puell Multiple stands at 1.3 with little room to rise above 2 or its upper limit.
As per the Puell Multiple and miners’ perspective, BTC does not seem to be overvalued or inflated at present. However, this could change if the metric surpasses 2.
Meanwhile, Bitcoin remains stable below $102,000 leading up to the Federal Reserve rate decision on December 18th.