Bitcoin Surges Despite Miner Selling Spree: Is a Bull Run Brewing?

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Over the past year, there’s been a steady decrease in Bitcoin (BTC) miner reserves. This is an unsettling trend to observe. Yet, despite this decline, Bitcoin has surged multiple times in price, even reaching the $100,000 mark. CryptoQuant analyst cryptoavails offers some explanation for this contrasting pattern, identifying the key factors fueling the current bullish market.

Bitcoin Miners Offload 37 Million BTC Amid Selling Spree

As an analyst, I recently noticed in my analysis that the Bitcoin miners’ holdings have been steadily declining since the latter part of 2023. Initially, they held approximately 1.808 million BTC, but as of now, their holdings remain at the same figure of 1.808 million BTC.

As a crypto investor, I’ve learned that when miner reserves increase significantly, it often means they are accumulating more coins. This accumulation is usually seen as a bullish sign because it suggests strong confidence in the cryptocurrency’s future price growth. Conversely, if miners are offloading their holdings due to high operational costs or cashing out profits, this can lead to increased selling pressure. This excessive selling can foster bearish sentiments among other investors, potentially leading to a downward trend in the market.

Despite Bitcoin miners offloading their coins, crypto analysts point out that the top cryptocurrency has shown significant periodic price growth, currently valued at approximately $103,000. This unexpected surge suggests that other market players, such as retail and institutional investors, have demonstrated strong demand to absorb all selling pressure from the miners.

For instance, the Bitcoin Spot Exchange-Traded Funds (ETFs), launched in January 2024, have been instrumental in driving up the price of Bitcoin during each surge in investments, which coincides with a rise in its market value. As per data from SoSoValue, these Bitcoin Spot ETFs currently hold a total net worth of $114.82 billion, an impressive figure given that they’ve only been active for slightly more than a year. This substantial demand from institutions suggests a strong appetite for the leading cryptocurrency.

It’s worth noting that according to Cryptoavail, as miners’ holdings decrease over time, there could be less BTC available for sale. This might lead to reduced selling pressure because miners have fewer coins to sell. Consequently, this scarcity could potentially boost Bitcoin prices in the future.

BTC To Enter Consolidation?

To keep its ongoing surge going and prevent another period of stagnation, well-known market analyst Rekt Capital proposes a predicted price trajectory for Bitcoin. Currently, the leading cryptocurrency is priced at approximately $103,114 following a 2.10% growth within the last day. Concurrently, its daily trading volume has swelled by 16.95%, amounting to around $65.8 billion.

According to Rekt Capital’s analysis, Bitcoin (BTC) needs to finish the day above its final resistance level at $106,000 for confirmation of a price break and setting a new all-time high. If this doesn’t happen, the asset may stay within a short-term range between $101,000 and $106,000, creating a consolidation zone instead.

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2025-01-18 14:41