Bitcoin Miners Sell Amid Hash Rate Drop, But Dormant Supply Remains a Concern

Bitcoin miners are facing increasing financial pressure due to restructuring efforts that have led to a reduction in both reserves and mining capacity.

The decline in hash rate has been particularly notable, dropping by roughly 21% as of writing from its peak. This contraction is unlike the one caused by China's 2021 ban, which resulted in a 41% decline.

In addition to miner restructuring, older holders are also moving their coins, with one wallet transferring 8.54 BTC worth approximately $539,000 for the first time in fifteen years. This represents a dormant supply returning to circulation and highlights changing holder behavior.

The broader market context is that over 3.5 million BTC remain idle for more than ten years, accounting for 17.7% of the total supply. The recent addition of 14,000 BTC to this cohort also underscores the notion that liquid supply is shrinking, which can strengthen scarcity when demand increases.