- Fred Krueger claims top Bitcoin miners hold minimal influence on market price with their current holdings.
- James Van Straten highlights substantial selling pressure from financially struggling, private Bitcoin miners.
The role of Bitcoin miners in influencing market prices is a topic of considerable debate among analysts. Recently, some experts have argued that the influence of miners on Bitcoin’s price has diminished.
Fred Krueger, a noted analyst, recently stated that the collective actions of the top five Bitcoin miners, who currently hold approximately 34,000 BTC, have a minimal impact on the market.
According to Krueger, even if these miners were to sell half of their holdings, the resulting $1 billion transaction would represent just 0.1% of Bitcoin’s total market value.
These miners no longer matter to the price of Bitcoin.
The top 5 together hold 34K BTC. Even if they sold half of everything they have, thats only 1 billion USD, or 0.1% of the value of the asset.
In terms of new supply, these 5 generate 2K BTC per month. It no longer matters.…
— Fred Krueger (@dotkrueger) June 26, 2024
Furthermore, he highlighted that these miners add around 2,000 BTC to the market each month, a figure he deems insignificant in the broader context.
“These miners no longer matter to the price of Bitcoin. The top 5 together hold 34K BTC. Even if they sold half of everything they have, that’s only 1 billion USD, or 0.1% of the value of the asset. In terms of new supply, these 5 generate 2K BTC per month. It no longer matters.”
Contrasting Krueger’s viewpoint, other analysts maintain that miners still play a crucial role in the Bitcoin ecosystem. James Van Straten, another analyst, emphasized that the selling pressure from miners, particularly those that are unprofitable and private, continues to affect Bitcoin’s price stability.
He noted that public miners control only 20-25% of the total hashing power, with the remainder held by private entities facing financial difficulties. Van Straten pointed out that the total miner supply remains substantial, with around 1.8 million BTC in circulation, valued at approximately $109.8 billion.
The ongoing discussion extends beyond individual analyst opinions. Market data reveals that the total reserves held by miners have reached levels comparable to lows observed in 2021.
This trend is supported by a recent ETHNews report, which noted a decrease in the Bitcoin Miner to Exchange Flow, indicating fewer miners are selling their Bitcoin immediately upon obtaining it.
Despite these observations, some experts, including Willy Woo, argue that miners’ decisions to hold or sell Bitcoin in response to market conditions remain a significant factor.
“Strip that away to get the real long term demand and supply. New investors, OG sellers, miners selling new supply in impulses. Turns out they still matter.”
Woo suggests that understanding the balance between new investors acquiring Bitcoin and miners selling their newly minted coins is essential to grasping the long-term demand and supply market.
As the debate continues, the Bitcoin community closely monitors miner behavior, especially in light of the prolonged low hash rates following the 2022 cryptocurrency market downturn.
The historical correlation between rising hash rates and Bitcoin price recovery remains a point of focus, suggesting that miners might still influence price trends, albeit not as dominantly as in past years.
