Bitcoin Remains Resilient Despite Satoshi-Era Miner Sales – Here’s Why

As a seasoned crypto investor with over a decade of experience in this dynamic market, I’ve seen my fair share of unexpected events that have shaped the trajectory of Bitcoin (BTC). The recent movement of dormant miner wallets from the Satoshi era transferring out a significant amount of BTC has certainly sparked curiosity and speculation within the crypto community.


Over the past week, several cryptocurrency wallets that haven’t been active since Satoshi Nakamoto’s time moved a large quantity of Bitcoin (BTC). Normally, miners selling their Bitcoin in large amounts can cause a surge in supply and potentially lead to a decrease in price. But surprisingly, despite recent miner sell-offs, the price of Bitcoin soared by more than 7% and reached a peak of $64,043 on Friday.

Bitcoin Miner Sales Remain Price Neutral As 100-Day EMA Hits Yearly Low

On a Friday, five wallets that were last active during the Satoshi period (the initial days after Bitcoin’s creation) transferred a total of 250 Bitcoins, equivalent to around $15.9 million, to new wallets. These particular wallets had originally been rewarded with 50 Bitcoins for mining each block back in 2009.

As a crypto investor, I’ve noticed the recent surge in Bitcoin transactions causing a buzz in our community. However, these events seem to have minimal impact on Bitcoin’s overall positive price trend. Delving into this development, a CryptoQuant analyst named Darkfost sheds light on the situation. He suggests that the latest increase in early miners’ outflows has not significantly influenced the price because of a steadily declining 100-day Exponential Moving Average (EMA).

As an analyst, I find that the 100-day exponential moving average (100-EMA) serves as a valuable tool for gauging the typical selling behavior of early Bitcoin miners over the past hundred days. It can assist in pinpointing trends and detecting price momentum. Interestingly, the most recent sales by these early BTC miners have not significantly affected the trajectory of this 100-EMA metric, which currently stands at its lowest point for the year, according to CryptoQuant’s data, as pointed out by Darkfost.

Consequently, these outflows, though substantial, don’t seem capable of generating enough selling pressure to impact Bitcoin’s current or near-future price significantly.

 

Bitcoin Remains Resilient Despite Satoshi-Era Miner Sales – Here’s Why

BTC Up By 124% Despite Poor Mining Metrics

Speaking as a crypto investor, I’ve noticed an impressive surge in Bitcoin’s price performance, even with some challenges faced by miners. As per the Bitcoin ChainCheck report from asset manager VanEek, Bitcoin has seen a remarkable Year-To-Date (YTD) growth of 124%, pushing its market dominance to approximately 56%.

During this timeframe, VanEck points out that the Bitcoin hash rate, which quantifies the earnings miners get per unit of computational power utilized in mining BTC, plummeted approximately 97%. This suggests that miners’ profits are significantly decreasing while the mining difficulty remains high.

presently, Bitcoin is being exchanged at approximately $63,146, showing a 0.23% increase over the last 24 hours. Nevertheless, its daily trading volume has significantly decreased by about 59.99%, now at around $14.1 billion. On the day-to-day chart, Bitcoin is encountering resistance near the $64,000 point. If it manages to surpass this level decisively, it could potentially lead to a surge toward the $70,000 zone. Conversely, weak buying interest might trigger a drop in price down to around $54,000.

Bitcoin Remains Resilient Despite Satoshi-Era Miner Sales – Here’s Why

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2024-09-22 14:11