Miners are likely starting to sell some BTC at this point.
According to data from Blockchain.com, BTC miner revenue has soared to levels not seen since Bitcoin’s third halving in May 2020, which reduced the miner block reward from 12.5 BTC to 6.25 BTC.
As such, BTC miners’ revenue hit $20.8 million on Nov. 4. According to Blockchain.com, this is the highest point recorded since September 2019, when the miners’ block reward was twice as much as now.
BTC miners revenue (USD). Source: Blockchain.com
A spike in BTC miner revenue levels is coming from the Bitcoin price doubling since May’s halving. On Nov. 4, the price reached a new 2020 high at $15,950, jumping more than 20% over the past seven days.
The jump is also due to the simultaneous rise in Bitcoin transaction fees. As reported by Cointelegraph, Bitcoin transaction fees surged by nearly 200% in late October. As such, the percentage of BTC miner revenue from fees has significantly increased, accounting for $4.15 million or roughly 20% of total miner revenue.
Amid parabolic growth in revenue, some miners are likely to start cashing out at this point.
According to analysts at CryptoQuant, some miners may be compelled to start selling BTC since the Miner’s Position Index is currently at around 4. Values above 2 indicate that most miners are selling.
Mining pool total outflows. Source: CryptoQuant
Additionally, there is also a noticeable spike in transactions from miners to exchanges as the price crossed above $15,000. However, the amount is still relatively small compared to pre-halving outflow levels.
“Insurance,” CryptoQuant CEO Ki Young Ju, commented on the spike in outflows, suggesting that while miners are being cautious, most are still likely anticipating the price of Bitcoin to go higher.