Recent on-chain data shows that selling pressure from Bitcoin miners has nearly dried up, potentially setting the stage for the market’s next upward phase. This development comes amid resilient bullish performance for major cryptocurrencies in April.
Pressure on Bitcoin weakens as mining sales decline
In a recent QuickTake post, analysts at XWIN Research Japan postulated that Bitcoin is now entering a demand-driven price expansion phase as the market structure begins to experience supply depletion. According to market experts, data from WuBlockchain shows that publicly listed Bitcoin miners offloaded more than 32,000 BTC in the first quarter of 2026 following a structural market correction, the largest quarterly outflow ever.
Factors contributing to this extreme selling can be traced to the Bitcoin halving in 2024. At that time, the block reward was reduced from 6.25 BTC to 3.125 BTC, significantly reducing profits. Meanwhile, network hashrate continued to rise, further pressuring profitability. With hash prices falling below the break-even point, many miners have been forced to liquidate their holdings to maintain cash flow. Additionally, some miners are accelerating the deployment of Bitcoin by shifting resources to AI and high-performance computing (HPC) infrastructure.
In particular, XWIN Research experts point out that on-chain indicators also strengthen this explanation, since miners’ reserves are gradually decreasing, while the net position change remains negative. This combination confirms that there was a continuous distribution over time. But a more important signal lies in recent flow dynamics. While the Miner Position Index (MPI) is negative, miner selling power has fallen sharply. This indicates that miners have continued to offload their holdings, but the strength of their sales is now waning. This means that the market no longer faces forced supply increases.
According to analysts at XWIN Research Japan, this evolving structure creates a two-stage dynamic. On the one hand, structural selling continued due to declining compensation and rising costs. On the other hand, current data indicates that this phase may be close to completion. Specifically, the Bitcoin cycle historically progresses from supply expansion to supply exhaustion before transitioning to demand-driven growth. Therefore, as miner-driven supply constraints ease, future price direction is likely to depend more on demand-side catalysts, including ETF inflows, institutional participation, and broader macroeconomic conditions.
Bitcoin Price Overview
At press time, Bitcoin is trading at $77,169, up 2.69% over the last 24 hours.
Featured image from Unsplash, chart from Tradingview
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