- Bitcoin miners continue to hold on to their BTC despite market volatility.
- Interest in Bitcoin ETFs is plummeting.
Despite the volatility Bitcoin faces [BTC] In recent months, some mining companies have shown resilience in the face of uncertainty.
Miners continue to exist
According to new data, US Bitcoin mining companies were diamond hands and refused to sell their BTC. This indicated that sentiment among most mining companies was positive and that they will not be selling off their assets anytime soon.
This meant that the selling pressure on Bitcoin would decrease in the future.
Source:
Furthermore, miner income also increased dramatically during this period, which is attributed to the increasing interest in Runes. In combination with this, the hashrate for BTC also grew.
A rising hashrate for Bitcoin means the network is more secure, but also more competitive for miners. They will need more powerful equipment and may experience lower individual profits.
Source: Blockchain
Despite these positive factors, there were some issues that could plague the Bitcoin ecosystem.
ETF hype disappears
Recent data has highlighted the trends in Bitcoin Exchange Traded Funds (ETFs) over the past week. We have seen a significant shift towards net outflows, with a total of $319 million disappearing from all Bitcoin ETFs.
Grayscale’s Bitcoin Investment Trust (GBTC) was a major driver of this decline.
In contrast, inflows into ETFs had previously peaked at $12.7 billion but now appear to have stabilized. This signals a possible cooling of investor sentiment towards BTC ETFs.
Additionally, the data indicates a decline in trading activity for these funds. Weekly trading volumes are down 12% compared to the previous week. This could be a sign of increased investor caution or a wait-and-see attitude ahead of Bitcoin’s upcoming halving.
Finally, the total Assets Under Management (AUM) for BTC ETFs has also decreased.
Current assets under management are $53 billion, reflecting a 10% decline from the previous week. This is consistent with the net outflow trend and potentially indicates a decline in total investor ownership of Bitcoin through these ETFs.
Source: SQRR.xyz
Read Bitcoin’s [BTC] Price forecast 2024-25
This declining interest in BTC ETFs could indicate that non-crypto-native investors may be losing interest in the king coin. At the time of writing, BTC was trading at $65,965.95 and had risen 1.26%.
Furthermore, the difference between long and short BTC had decreased, indicating that the number of long-term holders holding BTC had decreased.
Source: Santiment