Bitcoin Surges Above $45,000 as Miners Hold onto Assets
Bitcoin has seen a 4% surge in the past 24 hours, approaching the $45,000 mark for the first time since mid-January. Currently trading at around $44,800, Bitcoin has experienced a 6.3% increase over the past week.
Miner Reserves Hit Lowest Level Since June 2021
Data from CryptoQuant shows that miner reserves, representing the amount of Bitcoin held by miners, have been declining since the launch of Bitcoin ETFs in January. These reserves have now reached their lowest level in months.
Miners Scale Back Sales Despite Profit Declines
In recent times, miners have reduced their daily sales of Bitcoin from over 800 BTC to below 300 BTC. This change suggests a shift in miners’ approach to their holdings, with publicly traded mining firms reporting an increase in their BTC reserves despite decreased profitability.
Selling Pressure Remains Subdued Despite Profitability Decline
Despite facing a decline in profitability, miners have chosen to hold onto their assets rather than sell them. Selling pressure has remained low, even though miners have been significantly underpaid in 2024.
Bitcoin Network Transactions Decrease
The Bitcoin network has experienced a decrease in transactions, dropping from an all-time high to a three-month low. Reduced activity in inscriptions and BRC-20 token transactions, particularly those using taproot addresses, is responsible for this decline.
Growing Interest from Whales and Speculation on Federal Reserve’s Monetary Policy
Large-scale investors or “whales” are actively accumulating Bitcoin, further supporting its upward trajectory. Additionally, speculation on the Federal Reserve’s monetary policy, with indications of potential rate cuts later in the year, has injected volatility into the cryptocurrency space.
Bitcoin Halving and Broader Cryptocurrency Market
The upcoming Bitcoin halving scheduled for April is expected to impact miners’ profitability. The broader cryptocurrency market is also experiencing an upswing, with the total market capitalization of all cryptocurrencies climbing over 3%.
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