Bitcoin Grapples with Miner Selling as Long-Term Outlook Remains Bullish
Bitcoin is going through a rough patch right now since miners have sold $485 million worth of BTC in just 12 days, the quickest rate of
Quick overview
- Bitcoin miners have sold $485 million worth of BTC in just 12 days, marking the fastest liquidation rate in nine months.
- Despite selling pressure, Bitcoin remains above $111,000, with a recent rebound to $112,000, although technical indicators suggest caution.
- Institutional investors now account for over 75% of Bitcoin trading volume on Coinbase, creating a significant supply-demand imbalance.
- Bitcoin's price is expected to remain volatile between $108,000 and $124,500, with potential for a breakout above $124,900 to initiate a parabolic phase.
Bitcoin BTC/USD is going through a rough patch right now since miners have sold $485 million worth of BTC in just 12 days, the quickest rate of liquidations in nine months. Even though there is a lot of selling pressure, BTC is still above $111,000. However, technical indicators say to be careful.
After hitting a six-week low, the cryptocurrency rose back to $112,000 on Thursday. However, the rebound is still weak. According to Glassnode, miners sold 4,207 BTC between August 11 and 23, lowering their liquid balances to 63,736 BTC, which is still worth more than $7.1 billion. This selloff is very different from the accumulation phase from April to July, when miners added 6,675 BTC to their stockpiles.
BTC Mining Profitability Pressures Drive Strategic Pivots to AI Infrastructure
The miner selloff happens at the same time that profitability data go worse. According to HashRateIndex data, Bitcoin has gone up 18% in the last nine months, yet miner profits have gone down 10%. The Bitcoin hashprice index is now at 54 PH/second, down from 59 PH/second a month ago. This is because mining is getting harder and there is less demand for onchain transactions, which is cutting into profits.
But this story goes beyond just making money. Mining businesses are moving more and more toward artificial intelligence infrastructure, with TeraWulf’s $3.2 billion deal with Google leading the way. In exchange for funding TeraWulf’s AI data center campus in New York, which is set to open in 2026, Google gets a 14% interest in the company.
Other miners are doing the same thing. Iren, an Australian company, is speeding up its purchases of Nvidia GPUs for AI facilities in Texas and British Columbia. Hive has also promised $30 million to GPU-powered operations in Quebec. This change in strategy shows that miners are trying to find new ways to make money because Bitcoin is so volatile.
Institutional Dominance Creates Supply-Demand Imbalance Despite Miner Sales
Even though miners are selling, the basic demand structure for Bitcoin is still strong. Institutional investors now make up more than 75% of Bitcoin trading volume on Coinbase. In Q2 2025, corporate ownership rose 35% from the previous quarter. The total amount of Bitcoin bought by businesses went from 99,857 BTC to 134,456 BTC. This caused an imbalance between supply and demand, with institutional demand being up to six times higher than daily mining production.
MicroStrategy is still the top company for accumulating Bitcoin, with over 632,457 BTC worth more than $71 billion. This means they have $25 billion in unrealized profits. There are currently 35 publicly traded firms that own at least 1,000 BTC each, up from 24 at the end of Q1 2025. This shows that institutional adoption is still on track.
Bitwise’s most recent predictions show how this is changing. They say that Bitcoin might reach $1.3 million by 2035, which would mean 28.3% annualized returns. Their analysis points to Bitcoin’s inelastic supply, with 94.8% already in circulation and annual issuance reducing to 0.2% by 2032, as the main reason for this, combined with rising institutional demand.
BTC/USD Technical Analysis Points to Megaphone Pattern Breakout Potential
Bitcoin is making bullish megaphone patterns on several timeframes, which could mean it will reach $144,000 to $260,000 this cycle. There are two clear patterns on the daily chart: There is a minor formation with a target of $144,200 and a larger 280-day pattern aiming toward $206,800.
The recent drop to $108,000 caused the short-term holder MVRV ratio to become oversold, much like it did when it hit a low of $74,000 in April before recovering by 51%. This number points to a possible local bottom, especially given retail and institutional buying is at levels not seen since the collapse below $75,000 in April.
But there are still technical problems that need to be fixed right away. Bitcoin is having trouble getting past $113,000. If it breaks below $110,750, it could drop much down under the $106,500 support level. The hourly MACD shows bearish momentum, and the RSI is still below 50, which means that the market is weak in the short term.
Bitcoin Price Prediction: Consolidation Before Next Leg Higher
Bitcoin is likely to be volatile in the $108,000-$124,500 region until the next big move, given how the market is right now. Miner selling puts pressure on the market in the near term, but the structural supply-demand imbalance caused by institutional adoption suggests that any weakening will probably be absorbed.
The main thing that would drive the price up is breaking above $124,900, which would confirm the megaphone pattern and possibly start the following parabolic phase with objectives of $144,000 to $260,000. The network fundamentals are still strong, with the hashrate close to an all-time high of 960 million TH/second, which calms concerns about stress in the mining sector.
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