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Bitcoin miners are slowing the pace of selling the world’s largest cryptocurrency by market capitalization, according to data cited by Bitfinex analysts earlier this week. Citing on-chain data from crypto analytics platform Glassnode, Bitfinex says bitcoin is flowing from miner wallets to exchanges, saying “sales are at its lowest level in three years.” rice field.
“This could indicate that miners have already moved or may be moving into a source of buying pressure,” the analyst continued, noting that miners are “seeking further (price) gains.” He added that he may be holding bitcoin because he anticipates it. .
It is commonly assumed that when Bitcoin miners move their BTC to exchanges, they are doing this in order to eventually sell it. As such, low flows from miners to the Exchange can be seen as a proxy for low BTC sales to Bitcoin his miners.
Bitcoin miners are tasked with providing the computing power to power Bitcoin’s decentralized, permissionless, peer-to-peer, blockchain-based payment network. They are rewarded for their efforts in newly created Bitcoins. Miners are one of the most important players in the Bitcoin market, so signs of selling pressure from this market segment are generally seen as bullish indicators for his BTC price.
Another signal that the Bitcoin bear market is over?
Excitement has been mounting in recent weeks in light of the latest Bitcoin rally (BTC rose nearly 40% this month, returning to the $23,000 territory) that may have ended the 2022 bear market. , Much of the Fed’s tightening appears to have already happenedrisks lean toward an easing of financial conditions in 2023 rather than a repeat of severe tightening in 2022.
Miner-to-exchange flows are also at their lowest level in three years, a number of on-chain and technical indicators showing a positive sign that Bitcoin may enter new Bitcoin markets. is just one of As we discussed in a recent post, the increasing confluence of technical and on-chain metrics tracked by Glassnode analysts in their “Recovery from Bitcoin Bear” dashboard is flashing green.
Currently, 6 out of 8 indicators are in line with the beginning of market recovery, and a 7th indicator may soon start to show signs of improvement. Elsewhere, bitcoin is now a “cross-generational long-term buying opportunity,” according to six on-chain indicators cited by crypto-research-focused Twitter account @GameofTrades_. These metrics include Cumulative Trend Score, Entity Adjusted Dormant Flow, Reserve Risk, Realized Price, MVRV Z-Score, and Puer Multiple.
Elsewhere, the widely followed Bitcoin fear and greed index has returned to the neutral territory (i.e. above 50) for the first time after a prolonged spell of fear and extreme fear. A sustained recovery to neutral often occurs at the start of the next Bitcoin bull market, such as early 2019 or mid-2020.
An analysis by crypto-focused Twitter account @CryptoHornHairs made the startling observation that bitcoin has followed almost exactly the footsteps of the nearly four-year market cycle it has followed over the past eight years. After bottoming out in November, Bitcoin could rally for nearly 1,000 more days before entering the next bear market in 2025, the analysis suggests.
Finally, the widely-held Bitcoin pricing model tells a similar story. , the price bottoms out near the middle of the four-year gap between halvings. Bitcoin halving is his quadrennial phenomenon. The mining reward will be halved, thus lowering the Bitcoin inflation rate. Past price history suggests that Bitcoin’s next big rally will come after the next halving in 2024.