Bitcoin Miners Hold Strong Amid Market Volatility, Interest in ETFs Declines
Bitcoin miners continue to hold on to their BTC despite market volatility, showing resilience in the face of uncertainty. According to new data, U.S. Bitcoin mining companies have refused to sell any of their BTC, indicating a positive sentiment and reducing selling pressure on Bitcoin in the future. Additionally, revenue generated by miners has increased, attributed to the rising interest in Runes, and the hashrate for BTC has also grown.
However, interest in Bitcoin exchange-traded funds (ETFs) has plummeted in recent weeks. Data shows a significant shift towards net outflows, with $319 million exiting all Bitcoin ETFs. Grayscale’s Bitcoin Investment Trust (GBTC) has been a major driver of this decline. Inflows into ETFs had previously peaked at $12.7 billion but now appear to have plateaued, suggesting a cooling off in investor sentiment towards BTC ETFs.
Trading activity for these funds has also decreased by 12% compared to the prior week, indicating increased investor caution or a wait-and-see approach before the upcoming Bitcoin halving event. The total Assets Under Management (AUM) for BTC ETFs has dipped to $53 billion, reflecting a 10% decrease from the previous week and potentially indicating a decline in overall investor holdings in Bitcoin through these ETFs.
The declining interest in BTC ETFs could suggest that non-crypto native investors are losing interest in the king coin. At press time, BTC was trading at $65,965.95 with a 1.26% price increase. The Long/Short difference of BTC has also declined, indicating a decrease in the number of long-term holders holding BTC. Despite these challenges, Bitcoin miners remain steadfast in their holdings, showing confidence in the future of the cryptocurrency.
