It stands to reason that cryptocurrency miners, including those residing in exchange traded funds such as the CoinShares Valkyrie Bitcoin Miners ETF (WGMI ), play important roles in affecting bitcoin prices.
After all, these companies accumulate bitcoin through their mining activities and there are times when they are sellers. In previous eras of bitcoin weakness, miners have been known to trim their holdings to raise cash. Likewise and as is the case with other market participants, there are occasions when miners will ring the register when bitcoin prices are high simply to make official their profits.
However, the extent to which miners affect pricing hasn’t been widely studying. Thanks to research firm Alphractal, that’s changing. In fact, the Alphractal’s Miners’ Flows indicator can be a useful though not foolproof gauge in forecasting future bitcoin price action. The research firm points out that miners, including WGMI components, are actually more impactful to bitcoin’s price than the scores of globally listed spot ETFs providing exposure to the largest cryptocurrency.
“The Miners’ Flows indicator tracks the total volume of transactions originating from Bitcoin miners’ addresses. Unlike ETFs and institutional funds, miners are fundamental participants in the network, directly influencing Bitcoin’s supply and liquidity,” according to a recent post on X.
How WGMI Holdings Can Affect Bitcoin Prices
Due to their status as miners, WGMI member firms typically aren’t big buyers of bitcoin because they don’t need to be. However, they can be and are sellers of the digital currency. That’s where Alphractal’s Miners’ Flows indicator offers utility to market participants.
It’s not a complex tool. Put simply, if miners’ flows are high, that implies miners are moving sizable amounts of the currency to exchanges for potential liquidation – moves that often occur when prices are high. Likewise, low miners’ flows are instructive in their own right.
“When Miners’ Flows are low, it suggests that miners are moving less BTC, often because they have already sold significant amounts earlier. This can indicate that selling pressure has decreased, potentially aligning with periods of price stabilization or accumulation,” adds Alphractal.
While there’s no denying that bitcoin and other digital currencies have subjected market participants to plenty of volatility this year, bitcoin bulls may be able to take heart because Alphractal data indicate miners’ flows have declined since the start of 2025. That could signal WGMI holdings have already conducted the bulk of their near-term selling.
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