Bitcoin miner selling pressure may be running out of steam, on-chain data suggests — a shift that could clear the way for the next demand-led leg up in BTC prices.
Analysts at XWIN Research Japan, in a recent QuickTake, point to WuBlockchain data showing publicly listed miners sold more than 32,000 BTC in Q1 2026 — the largest quarterly outflow on record. That selling streak, XWIN says, reflects a structural realignment driven largely by post‑halving economics: after the 2024 halving, block rewards dropped from 6.25 BTC to 3.125 BTC, while the network hash rate kept climbing. The result was a squeeze on miner revenue and a decline in hash price below breakeven for many operators, forcing liquidations to shore up cash flow.
The report also highlights an operational shift among some mining firms: capital and resources are being redeployed into AI and high‑performance computing infrastructure, which has accelerated coin distribution from the miner cohort. On-chain metrics support this picture — miners’ reserves have steadily fallen and net position change has stayed negative, signaling prolonged distribution.
Crucially, XWIN points to recent flow dynamics as the turning point. Although the Miner Position Index (MPI) remains negative (miners are still net sellers), Miner Selling Power has plunged, indicating a sharp drop in the intensity of miner liquidations. In short, miners have been selling for some time, but the forced supply pressure appears to be easing.
That matters because Bitcoin cycles historically shift from periods of supply expansion to supply exhaustion and then onto demand-driven price appreciation. If miner-driven supply constraints are indeed loosening, future price direction will increasingly hinge on demand-side catalysts: ETF inflows, renewed institutional participation, and broader macroeconomic conditions.
At press time, Bitcoin traded around $77,169, up about 2.69% in the past 24 hours.
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