Recent data from blockchain analytics indicates that the selling pressure from Bitcoin miners might be nearing its end, hinting at a potential upward trend in the market. This development comes amidst a strong bullish performance by Bitcoin in April.
Diminished Miner Selling Alleviates Pressure on Bitcoin
In a recent analysis by XWIN Research Japan, experts suggest that Bitcoin is entering a phase where demand is driving price growth as the market shows signs of supply exhaustion. WuBlockchain data reveals that publicly traded Bitcoin miners sold over 32,000 BTC in Q1 2026, marking the largest quarterly outflow ever recorded, aligning with the market’s structural shift.
The increased selling activity can be attributed to the 2024 Bitcoin halving event, which reduced block rewards by half, leading to a significant drop in revenue. Despite this, the network hash rate continued to rise, squeezing profitability further. As mining became less profitable, miners had to sell off their holdings to maintain cash flow. Additionally, some miners redirected resources to AI and high-performance computing projects, hastening the distribution of Bitcoin.
Furthermore, XWIN Research experts highlight on-chain metrics that show a gradual decline in miners’ reserves and a consistent negative net position change, indicating sustained distribution over time. However, the significant development lies in the recent flow dynamics. While the Miner Position Index remains negative, Miner Selling Power has decreased significantly, suggesting a weakening intensity in selling pressure, signifying a decrease in forced supply in the market.
XWIN Research Japan analysts suggest that this evolving market structure presents a two-phase dynamic. There has been a prolonged period of structural selling due to reduced rewards and increasing costs; however, current data implies that this phase may be nearing its conclusion. Historically, Bitcoin cycles transition from supply expansion to exhaustion before moving towards demand-driven growth. As the constraints on supply from miners ease, future price movements are likely to be influenced by demand-side factors such as ETF inflows, institutional involvement, and macroeconomic conditions.
Bitcoin Price Analysis
Currently, Bitcoin is trading at $77,169, showing a 2.69% increase in the last 24 hours.
Featured image from Unsplash, chart from Tradingview
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