Amidst market turbulence, Bitcoin miners remain steadfast in retaining their BTC holdings.
- Bitcoin miners continue to hold on to their BTC despite market volatility.
- Interest in Bitcoin ETFs plummets.
Despite the volatility faced by Bitcoin [BTC] in the last few months, some mining firms have shown resilience in the face of uncertainty.
Miners persist
According to new data, U.S. Bitcoin mining companies were diamond hands and refused to sell any of their BTC. This indicated that the sentiment amidst most mining companies was positive and they won’t be selling their holdings anytime soon.
This meant the selling pressure on Bitcoin would reduce in the future.
Additionally, the revenue generated by miners also increased a lot during this period, attributed to the rising interest in Runes. Coupled with that, the hashrate for BTC also grew.
A rising hashrate for Bitcoin means the network is more secure, but also more competitive for miners. They’ll need more powerful equipment and potentially face lower individual profits.
Despite these positive factors, there were some problems that could plague the Bitcoin ecosystem.
ETF hype fades
Recent data highlighted trends in Bitcoin exchange-traded funds (ETFs) over the past week. We’ve seen a significant shift towards net outflows, with a combined total of $319 million exiting all Bitcoin ETFs.
Grayscale’s Bitcoin Investment Trust (GBTC) was a major driver of this decline.
In contrast, inflows into ETFs had previously reached a peak of $12.7 billion, but now appear to have plateaued. This suggests a potential cooling off in investor sentiment towards BTC ETFs.
Furthermore, the data indicates a decline in trading activity for these funds. Weekly trading volumes have dropped by 12% compared to the prior week. This could be a sign of increased investor caution or a wait-and- see approach before the upcoming Bitcoin halving event.
Finally, the total Assets Under Management (AUM) for BTC ETFs has also dipped.
The current AUM sits at $53 billion, reflecting a 10% decrease from the previous week. This aligns with the trend of net outflows and potentially indicates a decline in overall investor holdings in Bitcoin through these ETFs.
Read Bitcoin’s [BTC] Price Prediction 2024-25
This declining interest in BTC ETFs could indicate that non crypto native investors maybe losing interest in the king coin. At press time, BTC was trading at $65,965.95 and its price had grown by 1.26%.
Moreover, Long/Short difference of BTC had declined indicating that the number of long-term holders holding BTC had fallen.
