Financial analysts are keeping a close eye on the actions of Bitcoin miners, as they have long influenced prices due to the cryptocurrency’s scarcity. However, according to Glassnode, the impact of miners on the market has been diminishing over time. Now, larger players like centralized exchanges, ETFs, and governments are dominating the scene. Let’s take a closer look at how this shift is happening.
The diminished role of bitcoin miners
In the past, BTC miners put considerable pressure on the market, generating an abundant supply of bitcoins. However, This influence has diminished with successive halving events. which halve the mining reward.
Over the past twelve months, miners' net flows have shown a typical change ofaround ±500 BTC per weekprecise a Glassnode survey.
In comparison, deposits and withdrawals from centralized exchanges and ETFs show variations of ±4,000 BTC, highlighting the lower influence of miners.
Miners no longer dominate the market as before. As an example, the recent dumping of bitcoins by the German government had only one limited impactthanks to the strong demand from ETFs and long-term holders (or HODLers).
Glassnode points out:
” Since Bitcoin hit its all-time high of $73,000, selling pressure from miners has remained low. »
Now, the biggest source of pressure comes from centralized crypto exchanges (CEXs).
The new power of ETFs and institutions
With l'arrival of ETFs and institutionsthe dynamics of the bitcoin market have changed significantly.
THE Eleven new American ETFs hold together more than 887,000 BTCthus becoming the second largest reserve After centralized exchanges which have around 3 millionThese institutional actors provide relative stability, even in times of volatility.
- ETFs have recorded inflows of more than $1 billion last weeka peak for months.
This stability is also due to the reduction of the influence of short-term speculatorsIndeed, while these investors have suffered significant losses during recent price declines, long-term holders remain strong.
Even when the price of bitcoin dropped to $53,500, about 25% of the supply was in unrealized loss. However, the percentage of supply in profit remained around 75%, a typical level during bull market corrections.
In conclusion, while bitcoin miners were once major players influencing the market, their role has gradually diminished in favor of large institutional holders and ETF issuers. This structural change suggests a future where market fluctuations will be less affected by miner activity, providing greater stability for long-term investors.
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