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Miners are reportedly gearing up for an increase in Bitcoin’s price amid a halving countdown. Several factors within the Bitcoin ($BTC) network suggest that a trend of price surges could emerge. This accumulation pattern reveals the miners’ confidence that there will be a future surge in Bitcoin ($BTC) prices. CryptoQuant, a prominent crypto analytical platform shed lights on the ongoing activities through its official X account.
Miners Are Betting on a Bitcoin Price Rise
— CryptoQuant.com (@cryptoquant_com) October 28, 2024
“Historically, when the MPI rebounded from a low, #Bitcoin’s price tended to experience significant increases.” – By @avocado_onchain
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Miners Hold and Reduce Bitcoin Sales
During low Bitcoin ($BTC) price periods, miners often reduce their Bitcoin sales. This approach allows them to accumulate and hold Bitcoin within their wallets, reducing market supply. This accumulation signals confidence in a future price rise. Historically, miners act as significant market participants, often impacting volatility. When they shift to holding, as they are currently, it often aligns with an anticipated price uptrend.
The Miner Position Index (MPI), currently reflects a low level of selling pressure. The MPI, which tracks miners’ transactions to exchanges, is notably low, showing that miners are holding instead of preparing for a sell-off. Historically, when the MPI rebounds from these levels, Bitcoin’s price has shown upward trends. This index suggests that the current hold strategy may be in anticipation of potential market highs by year-end or early next year.
Block Rewards and Network Activity Increase
Bitcoin’s block rewards have been rebounding, suggesting increased transaction activity across the network. This uptick in network participation often correlates with heightened market interest and price increases. Miners’ confidence in retaining their Bitcoin holdings and increased activity within the Bitcoin network adds to the narrative of a potential price rise.
Bitcoin’s recent favorable price movement aligns well with miners’ strategic shift to holding. Given the historical trends, Bitcoin’s price could grow significantly as miners continue to hold. The signals from miners and on-chain indicators highlight an optimistic outlook for Bitcoin’s near-term market trajectory.