Bitcoin Miners HODL as Price Surges Above $45,000
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Bitcoin surged past the $45,000 milestone on Thursday, marking its highest point in a month. This upswing coincides with recent data indicating that Bitcoin miners are holding onto their coins, alleviating some of the selling pressure on the market.
According to insights from CryptoQuant, a platform specializing in tracking on-chain data, major U.S. publicly traded Bitcoin mining companies have steadily increased their Bitcoin holdings in recent months. Notably, Marathon Digital, among the largest bitcoin miners in the U.S., has amassed over 8,000 bitcoins since October 2023.
Furthermore, CryptoQuant’s analysis reveals a significant decline in daily sales by miners, plummeting from over 800 bitcoins between November and December 2023 to below 300 bitcoins thus far in 2024. This suggests a growing confidence among miners in Bitcoin’s enduring value, leading them to refrain from immediate liquidation of their rewards.
One contributing factor to miners’ retention of coins is the dwindling profits from Bitcoin network fees.
Analysts at CryptoQuant note a staggering 90% reduction in fees from their peak in December, attributed to decreased network activity. Daily transactions on the Bitcoin network have plummeted from an all-time high of 731,000 in late December to a three-month low of 278,000 presently.
Crypto Liquidations Pushing Bitcoin Higher
The surge in Bitcoin’s price isn’t solely attributable to reduced selling pressure from miners. The market has also witnessed a notable increase in liquidations of leveraged cryptocurrency positions due to heightened price volatility, resulting in margin calls and forced closures.
Coinglass, a platform specializing in monitoring liquidations, showed liquidations exceeding $121 million in leveraged positions across the market on Thursday, with over $48 million stemming from BTC shorts alone.
The convergence of bullish sentiment, diminished supply, and heightened demand have propelled Bitcoin’s price above the $45,000 resistance level, precisely reaching $45,507, paving the way for further upward momentum.
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