Recent analysis by CryptoQuant reveals a significant reduction in Bitcoin selling pressure from miners, suggesting a potential upward trend for BTC and the broader cryptocurrency market. The easing of this pressure comes after a period of intense sell-offs as miners struggled with declining revenues post-halving.
The Bitcoin halving event in April, which reduced mining rewards from 6.25 to 3.125 BTC, impacted miners’ profitability, particularly those using older equipment. This led to increased sales of Bitcoin to cover operational costs, contributing to market declines. Even large mining operations faced financial challenges, with Marathon Digital selling 1,400 BTC by June 10, up from 390 BTC in May.
However, CryptoQuant’s latest data indicates a notable decrease in the volume of Bitcoin being transferred from miners’ wallets. This shift could bolster Bitcoin’s price and potentially trigger a broader market rally if the trend of reduced sell-offs continues.
Amid these developments, the mining industry has seen significant changes. Phoenix, a UAE-based Bitcoin mining company, recently announced its $370 million IPO on the Abu Dhabi Stock Exchange was oversubscribed. Phoenix operates in proprietary Bitcoin mining, colocation hosting, and ASIC machine distribution, with a hashrate capacity of 13.9 EH/s across North America and the Middle East.
For 2023, Phoenix projects a total revenue of $247 million and an EBITDA of $172 million. Interestingly, despite its focus on mining, the majority of Phoenix’s revenue comes from hardware sales. In 2022, its computer hardware trading subsidiary generated $720 million, comprising 95.44% of total revenues, primarily through agreements with Bitmain and MicroBT.
This easing of miner selling pressure and the positive outlook for companies like Phoenix could signal a brighter horizon for Bitcoin and the broader cryptocurrency market.