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HomeNewsIs a Huge Bitcoin Surge Coming? Miners Hold the Key!

Is a Huge Bitcoin Surge Coming? Miners Hold the Key!

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  • Bitcoin miners control 9.1% of total BTC supply, potentially influencing market dynamics through their holding decisions.
  • With miners holding 1.8 million BTC, their actions could trigger a supply shock if they withhold selling.

Bitcoin miners, who control 9.1% of the total BTC supply, are in a position that could potentially influence market liquidity.

These miners are determining the available supply of Bitcoin, as their decision to sell or hold can significantly affect the market.

Bitcoin Miner Reserve - All Miners
Source: CryptoQuant

Currently, Bitcoin miners collectively hold about 1.8 million BTC out of a circulating supply of 19.7 million. This concentration in the hands of miners poses a theoretical possibility for a supply shock if they collectively decide to withhold their BTC from the market.ย 

BM-Pro-Hash-Ribbons-Indicator
Source : Bitcoin magazine Pro

A supply shock occurs when there is a sudden increase or decrease in supply that is unexpected by the market, potentially leading to volatile price movements. The behavior of Bitcoin miners has been closely monitored, especially considering the broader market conditions.ย 

Bitcoin has recently shown resisten, recovering from a low of $52,000. Despite this recovery, a definitive market bottom has not been clearly established, which adds complexity to the potential impact of minersโ€™ actions on the market.

glassnode-studio_btc-entities-supply-distribution
Source : Glassnode

From an economic standpoint, if miners were to limit the amount of Bitcoin they release into the market, it could lead to a decrease in available supply. Traditionally, if demand remains constant or increases while supply decreases, prices could rise.ย 

Bitcoin Miner Outflow (Total) - All Miners
Source: CryptoQuant

However, the current market shows that while miners have held back from selling, the decrease in holdings from large investors or ‘whales’ has counterbalanced this effect.

The whale cohort, which previously held a larger percentage of Bitcoin, has seen a decrease in their share from 24% to 21.9%.

This reduction aligns with a period of less aggressive accumulation by these large holders, potentially reducing the likelihood of a sharp supply shock driven solely by miner retention.

As the market watches these developments, BTCโ€™s price stability above the $51,000 mark remains a key area of interest. If buying pressure increases and continues to support the market above this level, there could still be potential for upward movement, contingent on broader market demand surpassing the tempered supply.

BM-Pro-MVRV-Z-Score
Source : Bitcoin Magazine Pro

Additionally, market analysts often look to the MVRV Z-score to gauge market value against realized value, which can provide insights into potential over or undervaluation phases.ย 

Currently, the Z-Score suggests that Bitcoin may be nearing a phase where it could be undervalued, offering possible buy opportunities for those looking to capitalize on eventual market recoveries.ย 

Such indicators are essential for traders aiming to pinpoint optimal entry and exit points based on historical pricing trends and current market conditions.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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