Recent on-chain data reveals that the selling pressure exerted by Bitcoin miners may be nearing exhaustion, setting the stage for what could be the next upward phase in the market for the leading cryptocurrency. This development comes on the heels of a remarkable performance by Bitcoin in April, showcasing its resilience against market pressures.
Reduced Mining Selling Weakens Pressure On Bitcoin
In a recent analysis, experts from XWIN Research Japan suggested that Bitcoin is entering a phase characterized by demand-driven price expansion as the market structure begins to experience a contraction in supply. Data from WuBlockchain indicates that publicly listed Bitcoin miners unloaded more than 32,000 BTC in the first quarter of 2026, marking the largest quarterly outflow on record, in line with an evolving market environment.
The rush to liquidate holdings can be largely attributed to the Bitcoin halving event in 2024, which cut block rewards from 6.25 BTC to 3.125 BTC, significantly impacting miners’ revenues. Simultaneously, the network’s hash rate has continued to rise, further compressing profitability. As the hash price fell below breakeven levels, many miners found themselves in a position where liquidating assets became necessary to sustain cash flow. Additionally, some miners have shifted resources to areas like artificial intelligence and high-performance computing, which has compounded Bitcoin’s distribution dynamics.
Interestingly, on-chain metrics corroborate this narrative, showing a gradual decline in miners’ reserves alongside a persistently negative net position change, indicating that distribution has been underway for some time. Yet, the most vital signal comes from observing recent flow dynamics. While the Miner Position Index (MPI) remains negative, the selling power among miners has sharply decreased, suggesting that while liquidation activities persist, the intensity of selling is diminishing—a sign that the market is no longer subjected to increasing forced supply.
XWIN Research emphasizes a dual-phase dynamic emerging from this situation. On one side, a prolonged era of structural selling driven by reduced rewards and escalating operational costs has prevailed. On the other, current data suggest that this phase could be nearing its conclusion. Historically, Bitcoin cycles transition from phases of supply expansion to exhaustion before shifting towards demand-driven growth. Consequently, as the constraints imposed by miner-driven supply lessen, future price movements are expected to hinge more on demand-side catalysts, including speculative ETF inflows, increased institutional participation, and broader macroeconomic conditions.
Bitcoin Price Overview
As of the latest data, Bitcoin is trading at $77,169, reflecting a 2.69% increase over the last 24 hours.
