Bitcoin's price has pulled back below the $43,000 mark, as the digital asset faces downside pressure from miners selling their reserves on the market.

"Much of the recent price falls in bitcoin, particularly following the approval of spot bitcoin ETFs by the SEC, can be attributed to selling by bitcoin miners, who used the run up in BTC as a catalyst to exit, or leverage, their positions," Bitfinex analysts said in a report on Tuesday.

The report noted that miners have been motivated to sell in preparation for this year’s upcoming halving, which will see their bitcoin rewards reduce and hence their business profitability decline.

"Selling now provides the capital for miners to upgrade infrastructure and is a reminder of the significant influence on market liquidity and price discovery …