Bitcoin Miner Outflows Surge to $3.2B in February Amid Price Swings

TLDR

• Bitcoin miner outflows surged to 28,605 BTC on February 5, totaling about $1.8 billion.
• A further 20,169 BTC, worth approximately $1.4 billion, left miner wallets on February 6.
• Public miners’ production for January was much lower than the February outflows, totaling just 2,377 BTC.
• Some miners, like CleanSpark, sold only a small portion of their mined Bitcoin, while others, like Cango, continued selling for expansion.
• Severe winter storms in late January led to a sharp drop in US miners’ hashrates, impacting Bitcoin production.

Bitcoin miner outflows surged sharply in early February, as large-scale transfers from miner-linked wallets hit 28,605 BTC on February 5, valued at approximately $1.8 billion. This marks one of the largest daily transfers since November 2024. Another 20,169 BTC, worth around $1.4 billion, left miner wallets on February 6, according to CryptoQuant data. These transfers align with significant price fluctuations during a volatile trading session, where Bitcoin’s price dropped from $62,809 to $70,544 over two days.

Bitcoin Miner Outflows Surge

On February 5, Bitcoin miner outflows spiked to 28,605 BTC, the largest single-day transfer since November 2024. This outflow coincided with sharp price fluctuations, triggering concern among market participants. The rapid movement of these funds could indicate a potential shift in miners’ strategies, but it does not necessarily imply immediate market selling.

Following the February 5 transfer, a further 20,169 BTC left miner wallets the next day. These transfers are substantial compared to January’s combined BTC production by public miners. According to Cointelegraph, large miners such as CleanSpark, Bitdeer, and Hive Digital Technologies mined only 2,377 BTC in total for the month. While the transfers raise questions about miner activity, they may reflect broader ecosystem flows, including internal wallet movements and exchanges.

Limited Public Sales Amid Large Outflows

Despite the massive Bitcoin miner outflows, public miner sales have been limited. CleanSpark reported mining 573 BTC in January, selling only 158.63 BTC, and ending the month with 13,513 BTC on its balance sheet. Other firms, such as Cango, also disclosed minimal sales, with Cango mining 496.35 BTC and selling 550.03 BTC to fund its expansion plans.

Public miner disclosures show mixed approaches to Bitcoin holdings. Some firms, like Canaan, opted to retain mined Bitcoin, with its reserves growing to 1,778 BTC by the end of January. Meanwhile, companies like Hive used structured pledge mechanics, ensuring liquidity while continuing operations without liquidating large amounts of Bitcoin.

US-based miners experienced disruptions in January due to severe winter storms. Bitcoin’s hashrate dropped by more than 40% during the last week of January, with significant declines in miners’ uptime. Firms like Marathon Digital Holdings and Iren reported lower production due to these external factors, affecting the broader network.

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