The MPI hit 4.52 on Jan. 7, as Bitcoin approached $40,000 levels, as per CryptoQuant data.
Why It Matters: The BTC sale by miners is diametrically opposite to institutional investors who made record Bitcoin purchases as the apex cryptocurrency crossed $30,000 levels, also noted by Ki last week.
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Willy Woo, an on-chain analyst, said in May that there are two factors that add selling pressure in the market after the block reward halving — Miners who dilute supply and sell on to the market and exchanges who tax traders and sell onto the market, Cointelegraph reported.
Miners have been beneficiaries of the 300% spike in Bitcoin prices in 2020 as they mopped up $692 million in revenue in December alone, a 33% jump over the preceding month, noted CoinDesk.