Despite popular belief, Bitcoin’s [BTC] recent price decline was not because of the miners.
Instead, the downturn might be tied to weak demand. So, there are concerns about the market’s ability to absorb supply. With miner selling near lows, the next move will likely depend on whether buying interest returns or not.
Are loss-making miners causing the sell-off?
A common market narrative of recent times is that Bitcoin’s recent weakness has been caused by distressed miners offloading supply. Rising post-halving costs (spanning electricity, hardware, and operations) have allegedly pushed many miners close to or below breakeven, forcing them to sell.
However, here’s a contrarian view. Miner Supply Ratio, which tracks BTC sent from miners to exchanges like Binance, has been steadily falling since early 2025.
Basically, miners are selling less, not more. Even so, Bitcoin’s price first rallied and then dropped during this period.
Key metric continues to fall
Furthermore, there’s additional data to prove that it isn’t the miners.
Miner Selling Power has fallen lower in recent months, so distribution is reduced from mining entities even at weaker prices.
Spikes in this metric have happened in tandem with sell-offs, but that pattern has been absent in the current phase.
Similarly, the Miner Position Index (MPI) has also been subdued, with only short spikes.
Bitcoin, exposed?
The pressure is likely coming from elsewhere, like ETF investors or whales. We’re going from a supply-driven market to a demand-driven one, so the absence of buyers is outweighing the lack of selling.
Despite tougher supply conditions, Bitcoin is trending lower now. This means that the market lacks sufficient demand to absorb even limited distribution.
Supply is no longer the problem. For a proper bottom to form, demand must return. Until that happens, Bitcoin will remain vulnerable to further downside.
Final Summary
Bitcoin is falling, despite historically low miner selling.
Weak demand is causing downside risk, leaving BTC vulnerable on the price charts.
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