In the ever-evolving world of cryptocurrency, understanding the trends and metrics that influence Bitcoin’s price is crucial. The on-chain analytics firm Santiment has shared insights that could potentially signal the onset of the next bull run for Bitcoin.
Bitcoin Miner Supply May Hold Key To Start Of Next Bull Rally
In a recent post on X, Santiment analyzed the trend in the “Supply held by Miners” metric. As the name suggests, this indicator measures the total amount of Bitcoin currently held in wallets associated with miners. When this metric rises, it indicates that miners are receiving a net number of tokens in their wallets.
Miners naturally receive coins as they solve blocks and earn rewards, so inflows are a regular occurrence. However, significant net inflows over an extended period can be noteworthy. Such a trend suggests that miners are holding onto their coins, which can be a bullish signal for Bitcoin’s price.
Conversely, a decline in this metric indicates that miners are transferring coins out of their wallets, possibly to sell them. Here is a closer look at the trend in Bitcoin Supply held by Miners over recent months:
The value of the metric has been on a downward trend since around April, suggesting that miners have been consistently moving coins out of their wallets. While miners regularly sell to cover operational costs like electricity, their recent persistent selloff may have contributed to Bitcoin’s price consolidation during this period.
One likely reason for this increased selling pressure is the fourth Halving event that occurred in April. This event permanently reduced the Bitcoin block subsidy by half, significantly impacting miner finances. With the halving and the overall bearish trend in BTC, miners have been under considerable pressure, forcing them to continue selling.
Santiment highlights that a reversal in the Supply held by Miners could be a critical indicator to watch. If miners start accumulating again, it could signal that they are comfortable enough to hold onto their coins, potentially marking the beginning of the next bull run.
Current BTC Price Analysis
As of the time of writing, Bitcoin is trading at around $58,200, reflecting a 6% increase over the past week. The recent upward movement in Bitcoin’s price suggests a positive trend, albeit the market remains vigilant of the miners’ behavior and other influencing factors.
Understanding the dynamics of Bitcoin miner supply and its impact on price trends is essential for investors and enthusiasts alike. By keeping an eye on these metrics, one can better anticipate potential market movements and make informed decisions.
Stay tuned for more updates and insights on Bitcoin and other cryptocurrencies as we navigate the ever-changing landscape of digital assets.
