Bitcoin Miner Outflows Surge in January, Yet Public Selling Stays Muted - Crypto Economy

TL;DR:

• A single-day outflow of over 28,605 BTC from miner wallets was recorded, valued at $1.8 billion.
• Public reports from mining firms show sales significantly lower than the total volumes transferred.
• Winter storms in the U.S. caused a 40% drop in hashrate in late January before its recovery.

The crypto ecosystem is currently facing massive Bitcoin miner outflows and selling pressure following the transfer of 28,605 BTC on February 5th, a figure reminiscent of the volatility levels seen in 2024.

This situation coincides with sharp price swings for the pioneer cryptocurrency, which dropped as low as $62,809 before rebounding strongly. However, it is essential to understand that these transfers do not always translate into immediate sales on the spot market.

Recent data from CryptoQuant reveals that many of these operations correspond to internal movements between wallets or transfers to private entities. Therefore, although the volume is daunting, the public selling activity reported by major mining firms remains moderate.


Operational Performance and the Impact of Weather on Mining

Regarding production, at least eight of the top mining companies—including CleanSpark and Bitdeer—reported a combined production of just 2,377 BTC in January. This figure underscores that February’s massive transfers far exceed the monthly production of publicly traded firms.

Additionally, the sector faced significant logistical challenges due to winter storms in the United States, which forced the temporary suspension of operations. This caused the network’s hashrate to plunge by 40% in late January, affecting the efficiency of giants like Marathon Digital.

In summary, while companies like Cango are selling assets to fund their expansion into artificial intelligence, others like Canaan prefer to strengthen their reserves. The market must monitor whether these massive transfers ultimately turn into a real liquidation or if they are merely part of a strategic treasury restructuring.