Miners' Selling Accelerates, but Market Absorbs Pressure
Cryptocurrency enthusiasts engage in mining activities after fresh All-Time High - Essential insights you ought to grasp!
Over the last month, Bitcoin (BTC) has witnessed a significant surge, reaching a new all-time high on the charts. CNN Business reports that Bitcoin miners have benefited from this rise, as their profit margins climbed 40% above the annual average.
According to Cryptoquant analyst Axel Adler, this growth in profitability has led miners to increase their activities on exchanges. Since BTC breached the $110,000 mark, miners have reportedly doubled their Bitcoin inflows to 50 BTC per day, signifying a 100% hike in the amount of BTC being sent into exchanges.
Historically, miner-to-exchange inflows have peaked at around 100 BTC per day, but current rates stand approximately 100% below these historical peaks. CryptoQuant notes that miners are selling strategically to finance operations, although this selling has not yet reached the scaling seen in previous cycles.
Although BTC's exchange netflows have remained consistently negative since hitting a new high, this strategic selling activity has not yet led to significant negative impact on price action. Bitcoin's Puell Multiple currently sits at around 1.4, a reading that usually appears during a healthy bull market, suggesting that the market remains comfortable absorbing the additional supply.
If miner exchange inflows continue to accelerate while buying activity reduces, it could potentially lead to price pullbacks on the charts. However, BTC's ability to recover from recent retraces and maintain a healthy phase indicates its resilience to miners' selling pressure.
In other news, whales have moved 2 trillion PEPE tokens off Bybit, prompting speculation among traders about the token's future direction. As the market continues to evolve, strong fundamentals and strategic selling patterns continue to shape the trajectory of major cryptocurrencies.
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- Despite the increased strategic selling by miners, the Bitcoin (BTC) market has shown resilience, continuing to absorb the additional supply, as indicated by the Puell Multiple reading of around 1.4.
- According to CryptoQuant, Bitcoin miners have doubled their Bitcoin inflows to exchanges, sending around 50 BTC per day, a level that traditionally peaks at around 100 BTC per day.
- Whales have moved 2 trillion PEPE tokens off Bybit, sparking speculation among traders about the token's future direction, highlighting the dynamic nature of the crypto market.
