Recent data from CryptoQuant indicates that major US Bitcoin mining corporations are continually growing their Bitcoin (BTC) holdings, which has contributed to the cryptocurrency’s price surging past $45,000. The accumulation of BTC by these firms suggests a reduction in selling activity, which traditionally bolsters the price of the digital asset.
Miners Exhibit Reduced Selling Activity
CryptoQuant’s analysis displays that public Bitcoin mining entities, like Marathon Digital, are on an upward trend with their Bitcoin reserves, reinforcing their confidence in the cryptocurrency’s value. This accumulation aligns with a broader decrease in miner selling pressure which is currently supporting the rise in Bitcoin’s market price.
Drop in Bitcoin Miner Sales and Network Fees
A weekly overview by CryptoQuant highlights a significant decline in Bitcoin sales from miners since the high selling period of November and December 2023. Additionally, despite a 90% reduction in earnings from Bitcoin network fees, miners have not resorted to diminishing their BTC reserves, showcasing resilience amidst lower network revenues.
The downswing in network fees is attributed to a decrease in network utilization, including a reduction in Bitcoin transactions and the creation of BRC-20 tokens. This has correspondingly led to a dip in transactions processed on the Bitcoin network.
As Bitcoin trades around $45,296, market spectators anticipate that maintaining above the $45,000 mark could set the stage for a rise towards $48,000 and potentially beyond the $50,000 threshold, should the current trends persist.