Bitcoin Miners are not Going to Stop the Next Bull Run

Historical data found out that several miners started to sell Bitcoin (BTC) at the end of July. As a result, it led to a boosted selling pressure in the cryptocurrency market.

After that, the dominant cryptocurrency fell deeply from mid-August, marking a 13% drop. Since then, Bitcoin struggled to rebound to the $12,000 price mark.

CryptoQuant CEO Ki-Young Ju stated that despite miners continuing to sell, it is might still be not enough to avoid a bull run. On-chain data analysis companies are sharply observing the movements of miners and whales because they hold significant amounts of Bitcoin.

On-chain analyst Willy Woo noted that miners represent one of the two external sources of selling pressure for BTC.

He explained, “There’s only unmatched sell pressures on the market. Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And the exchanges who tax the traders and sell onto the market.”

BTC Holdings of Miners

As miners begin to sell their Bitcoin holdings – usually to cover expenses, it could ignite a correction in the cryptocurrency market.

For example, from August 17 to September 3, BTC’s price declined from $12,486 to $9,813. In that period, some whales sold Bitcoin right at $12,000, and the same behavior is showing among miners.

In addition to that, the selling pressure coming from miners and whales became attributed to the recent crypto market slump. However, Ki said it is not enough to stop a prolonged bull run for the longer term.

If miners suddenly sell a significant amount of Bitcoin, it could end up in an extreme correction as a small price movement might trigger liquidations from heavily-leveraged traders. Thus, even a relatively small sell-off by miners could still cause massive price swings.

According to Ki, the sell-off intensity from miners was not strong enough to stop future bull runs.

He wrote, “Miner Update: Some miners began selling at the end of July, but I think in the long-run, miners didn’t sell BTC large enough to stop the next bull-run.”

Then, ByteTree said that Bitcoin miners’ net inventory fell by 125 BTC per week in the past 12 weeks. The data shows that miners sold about $1.362 million Bitcoin per week atop the BTC they mined and sold.

Ki highlighted in the data that miners sold substantial amounts of Bitcoin, but not in irregular amounts to typical behavior.

Post-Halving Bull Cycle

As of now, Bitcoin is still lingering above the critical $10,000 technical support level despite multiple attempts by bears to fall the price below the key level.

Aside from that, BTC’s resilience during a heightened level of selling pressure hints a cautiously bullish trend in the long term.

Also, some on-chain metrics signal a healthy accumulation phase for Bitcoin.

Glassnode’s CTO Rafael Schultze said, “Short-term Holder Net Unrealized Profit/Loss (STH-NUPL) with a #bullish signal here imo.”

According to Schultze, the said bounce of the 0-line is essential and very characteristic for previous bull markets. Then, it is historically a good buying opportunity too.