CryptoQuant, the famous analytical platform, has recently shared some positive signals about Bitcoin, indicating that miners’ selling pressure is decreasing drastically. In the recent X post, CryptoQuant explained the shifts in the Bitcoin market, with the focus on the miners’ actions.
Long-term speculators, such as miners have been the main participants in the current bear market. This trend was only escalated after the BTC halving event that saw the reduction in mining rewards.
The mining profitability decline led to many older miners becoming unprofitable, hence, being shut down, which brought down the whole mining rate. Miners, in order to continue mining, had to sell their BTC through over-the-counter (OTC) transactions thus putting more supply on the market and consequently causing the prices to drop.
Miners’ Bitcoin Outflow Plummets
The platform findings reveal that the number of Bitcoin being sent from the miners’ wallets has drastically reduced. This make it indicate that the selling pressure from miners which has been a key factor in determining the price of Bitcoin is gradually declining.
This is important for the BTC market because the selling pressure would decrease and thus the market can easily accommodate the current supply. This situation creates the conditions for a price upturn. If the remaining volume is to be sold in the market then we could be at the beginning of a major upswing for Bitcoin.
Based on the analysis presented in the course of this paper, the third quarter of the year 2024 may be favorable for Bitcoin. The market mood is somewhat neutral, even though a large number of investors expect a change in the price trends in the near future. Miners are not selling as much, which is one of the reasons for the positive expectations in the near future. If this trend is to continue then the prices of Bitcoin may very well be on the road to recovery, especially considering that the flow of new supply from miners will be declining.
According to CryptoQuant, the miners’ selling pressure has been on the decline recently, which may indicate the beginning of the new growth stage for Bitcoin. Thus, as the market works through the stock, it creates an opportunity to work higher and establish a new price. It remains to see what the third quarter of 2024 would bring given that investors and participants in the market are expecting the market to turn positive for Bitcoin.
