Bitcoin miners have offloaded nearly 25,000 BTC holdings as part of their profit-booking amid the recent rally. With over 4% gains in the last 24 hours, the BTC price makes yet another push past $90,000 hitting new all-time highs. However, on-chain developments show that the journey to $100K is likely to face hurdles which might also cause a delay in it.
Bitcoin Miners Heavily Selling Their BTC
Julio Moreno, the head of research at CryptoQuant noted Bitcoin miners are taking advantage of the recent price surge above $90,000. It is also evidenced by their transfer of a large part of their Bitcoin holdings out of their wallets. On Wednesday, a robust outflow of 25,000 Bitcoin was recorded, highlighting miners’ active selling as BTC price reached new highs.
Courtesy: CryptoQuant
Following the Bitcoin halving event in March 2024, the BTC miners sold heavily to overcome their rising operational costs and reduced profits. This led to a strong 200 days of Bitcoin price consolidation thereafter before giving a breakout from the previous all-time highs of $74,000. Now that the BTC price crosses $90,000, we might again see renewed selling pressure coming from the miners.
Additionally, Moreno also stated that traders’ unrealized profit margins have reached a high level of 47%. This could indicate a potential Bitcoin price correction or a crypto market crash moving ahead. Historically, elevated profit margins have preceded market pullbacks, with previous peaks at 69% in March and 48% in December 2023. The current level is raising caution among analysts as Bitcoin hovers near recent highs.
Courtesy: CryptoQuant
Just as Bitcoin hits a new all-time high, there have been growing calls for $100K. However, blockchain analytics firm Santiment reported greater chances of a countertrade that would delay this surge. It noted:
“The hype across social media platforms is calling the tops very reliably. Counter-trade the crowd with confidence while records are being broken right now. Historically, successful traders buy into crowd doubt if prices are causing retail to sell. And if the crowd floods social media with FOMO, this should be taken as a caution flag”.
Mining Company Stocks on Freefall, What’s Next for BTC Price?
The US election rally for Bitcoin mining stocks has come to a halt ultimately as the companies’ Q3 numbers fall short of expectations. The stock price of top firms like Marathon Digital (NASDAQ: MARA), Riot Platforms (NASDAQ: RIOT), CleanSpark (NASAQ: CLSK), and others plummeted by 12-15% on Wednesday, November 13.
Some market analysts believe that this shouldn’t be much of a concern considering that the mining stocks have never moved in tandem with the Bitcoin price.
For those worrying about today’s price action vs Bitcoin: Miners will do their own thing.
Bitcoin mining stock returns have never been very highly correlated with Bitcoin returns over the last 3 years.
Some miners have a higher correlation than others, but none are above 0.6.… pic.twitter.com/2Ei5ANIhR4
— Matt Faltyn (@mattfaltyn) November 14, 2024
Others believe that Bitcoin might come to retest the previous breakout of $74,000, before making the final push to $100K levels, amid the ongoing Bitcoin miners’ selloff. Thus, investors might take a cautious stand before building any fresh positions. Also, inflows into Spot Bitcoin ETFs have been slowing after a mega boost last week.
The post Bitcoin Miners Move 25K BTC, Here’s Why $100K BTC Price Rally Won’t Happen Soon appeared first on CoinGape.
