Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Bitcoin minersare shifting strategies as the BTC price rebounds back above $114,000 after declining from all-time highs. Instead of sticking to familiar patterns, mining firms are adjusting how they manage their holdings and operations, signaling a change in the status quo as market conditions slowly recover. Bitcoin Miners Shift From Selling To Accumulating
A new analysis from CryptoQuant suggeststhat Bitcoin miners are breaking away from historic patterns as BTC hovers above $114,000. The data reveals a significant structural shift in miner strategies, with long-term accumulation taking precedence over aggressive sell-offs, even during price surges. Related Reading Bitcoin Miners Are Changing The Status Quo As BTC Price Hits $114,000, Here’s What They’re Doing 8 hours ago
The Miners’ Position Index (MPI)has historically been a crucial market sentiment indicator. CryptoQuant revealed that sharp spikes in MPI often occurred during two critical periods— pre-halving, when miners sold operations of their holdings to secure liquidity, and late bull markets, when they took advantage of retail-driven price momentum.
However, the trend is markedly different in the current cycle. While some pre-halving selling has been recorded, the signature late-cycle liquidations are noticeably absent. According to CryptoQuant, this deviation suggests that external factors such as Spot ETF approvalsfrom sovereign economies’ recognition of Bitcoin as a strategic reservecould be encouraging miners to hold onto their BTC rather than liquidate it. Source: Chart from CryptoQuant on X
The resilience of the Bitcoin network itself represents another critical aspect of this shift. Mining difficulty has soaredto unprecedented levels, with its trajectory following what analysts have dubbed the “Banana Zone.” Such sporadic growth not only underscores miners’ confidence in Bitcoin’s long-term potentialbut also reduces the likelihood of a miner-driven supply shock hitting the market.
Transaction fees provide further confirmation of the recent changes in miner strategies. CryptoQuant notes that in previous cycles, spiking feeswere usually precursors to overheated market conditions and inevitable downturns. Despite significant fee increases, Bitcoin’s price action has remained steady this time, showing a stepwise rally rather than a blow-off top. The pattern strongly supports the theory that miners are strategically accumulating BTCinstead of releasing supply during short-term demand surges. Mining Difficulty Rises Despite BTC Price Volatility
Even as miners adopt a longer-term strategy, Bitcoin’s mining difficulty continues to top the charts, climbing past 136 trillionearlier this week and marking a new all-time high. While this milestone highlights the network’s unmatched resilience, it comes during increased volatility in Bitcoin’s price action. Related Reading Shakeout Pattern Says Bitcoin Price Is Not Done, Why It’s Headed Above $130,000 1 day ago
Notably, crypto analyst Matthew Hyland pointed outthat Bitcoin’s monthly Bollinger Bandshave reached their most extreme level in history, signaling an unprecedented surge in volatility across the market.
In addition, over the past month, Bitcoin has dropped 4%, retreating from its ATH level above $124,000to its current level of $114,000, according to CoinMarketCap. Although its 2.73% increase to $114,000 in the last week signals growing momentum, market analysts remain cautiousabout what lies ahead. BTC trading at $113,956 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pixabay, chart from Tradingview.com