Bullish Bitcoin Miners Cease Selling For The First Time Since 2020

Tony "The Bull" Severino

Last Updated: June 11, 2024 2:13 pm

3 mins read

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Data shows that Bitcoin miners have ceased taking profit and have started to once again hoard BTC for the first time since mid-to-late December 2020.

What’s notable about this, is the fact that the leading cryptocurrency by market cap appreciated in price by more than double during the sustained selling. If that’s the case, what happens now with miners once again withholding any BTC from entering the already limited supply available to buyers?

Bitcoin Miners Go Back To Holding After Selling Since December

Bitcoin isn’t just an asset, its a blockchain ecosystem kept in operation by a process called proof-of-work. Miners provide computer processing power through converted energy, and in turn they receive a reward of 6.25 BTC as an incentive for their efforts and related costs.

When it comes time to pay bills or cover the costs of other operations, miners must sell the BTC they’ve generated into cash, bringing fresh supply into the market. When miners do sell, it can be a short-term turning point for uptrends.

BTC miners "net position" has turned green for the first time since December | Source: glassnode

Miners, alongside whales, have been responsible for each correction in the crypto market over the last few months, when selling began ramping up in mid-to-late December 2020. Miners started selling BTC following the all-time high being cracked, and have kept taking profit all the way up since then.

According to data from blockchain analytics firm Glassnode, Bitcoin miners are now holding their BTC, rather than selling it into the market to cover operations or to take profit.

Crypto Liquidity Crisis To Kick Into Overdrive Without Incoming BTC Supply

Bear markets cleanse the cryptocurrency’s underlying ecosystem of the weakest participants. Weak-handed investors sell their coins, and underfunded or under-resourced miners – or those with poor access to low energy costs – must close up shop and capitulate.

When the process is said and done, what is leftover is a stronger set of hands, and miners better equipped for a stronger uptrend – the results of which are bearing its fruit now.

If Bitcoin price has doubled per coin while miners were selling, what happens next? | Source: BTCUSD on TradingView.com

Investors have done their job and held their coins strong as prices began trending, leaving few BTC available for institutions to buy. Miners have been dumping this entire time, keeping price action at bay.

Related Reading | Why March Is The Bloodiest Month In Bitcoin History

With no coins left on exchanges, and no coins coming in from miners, all that’s left is mania-induced, parabolic price appreciation. Where does the leading cryptocurrency by market cap go next from here?

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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