Miners play a huge role in the Bitcoin network. They usually sell Bitcoin around halving events, when mining rewards are cut in half. After that, they often switch to accumulating Bitcoin during quieter market periods. As the cycle progresses, they tend to sell again to keep profits steady and gear up for the next crypto winter.
According to a recent report by CryptoQuant, miners are back to accumulating more Bitcoin. The average amount of Bitcoin going into miners’ wallets has increased. This pattern of accumulation resembles behavior seen before previous post-halving price rises. In simple terms, miners are stacking up again, which could be a good sign.
Using the 30-day moving average (30MA) on miner inflows, CryptoQuant points out that “significant price increases followed these periods of accumulation.” So, when miners start holding more Bitcoin, history suggests a price rise might follow.
The Miners’ Position Index (MPI) further backs this up. The MPI shows that Bitcoin withdrawals to exchanges are currently lower than usual. This is often a sign that miners expect prices to go up. As CryptoQuant notes, “historically, this behavior has been a precursor to Bitcoin price increases.”
For us, this means we could see medium to long-term price increases for Bitcoin. Miners need higher prices to survive, making their actions a reliable indicator of what’s to come. So, when miners start holding onto their Bitcoin, it’s worth paying attention. This could be a strong signal that a price move might be on the horizon.
At the time of writing, Bitcoin is trading at $59,255 according to CoinMarketCap data, pretty stable over the last 24 hours with a 0.75% gain. Follow us at HowToBuyBitcoin.org for more updates and analysis.