Bitcoin has encountered a tough market landscape, with its price lingering beneath $88,000 and experiencing a 10.1% decline over the last two weeks.
This noteworthy dip has been characterized by substantial selloffs and a noticeable absence of upward movement. Nevertheless, amid this bearish sentiment, a recent observation from a CryptoQuant analyst within the Bitcoin mining sector has come to light.
Miners Hold Onto Their Bitcoin
An analyst from CryptoQuant, BilalHuseynov, has pointed out a fascinating change in the behavior of miners. He reports that Bitcoin miners have significantly curtailed their withdrawal activities.
Since December 2024, miner reserves have remained stable, suggesting that miners are opting to retain their mined Bitcoin instead of selling it. This change follows a period of heightened selling when values were elevated. BilalHuseynov remarked:
The Miner Reserve has not shown any nominal change since December 2024. Whenever the Bitcoin price rose, miners made notable sales. That was evident! However, since last December, after Bitcoin reached its ATL per Bitcoin Miner Withdrawing Addresses, we observe that withdrawal transactions have ceased or even decreased.
This approach seems to correlate with a general market decline, where miners choose to accumulate Bitcoin during low-price phases instead of cashing out.
“Miner Reserves are not significantly impacted. It appears they are amassing Bitcoin. Typically, this occurs during downward trends in the crypto market,” the analyst added.
Overall, BilalHuseynov’s data indicates that miners could be gearing up for a potential recovery. By choosing to hold rather than sell, they effectively alleviate supply pressure, which may aid in stabilizing prices over the long term.
Institutions Make Moves
In a related update, another CryptoQuant analyst, Amr Taha, has observed noteworthy outflows from Coinbase Advanced over the past two days. These substantial outflows—seen as aggressive accumulation—might indicate a rising interest from institutional investors.
As Coinbase functions as a vital platform for US-based institutions, these large withdrawals could signify long-term holding strategies rather than short-term speculative actions.
Moreover, Taha pointed out that these transactions might be linked to Bitcoin ETF activity, signaling heightened underlying demand and supporting the narrative of a potential «supply squeeze». The analyst noted:
Such large outflows generally imply accumulation by institutions or significant investors, potentially indicating bullish sentiment. If this coincides with increased spot demand or ETF inflows, it could strengthen the case for a supply squeeze narrative.
Meanwhile, Bitcoin remains in bearish territory, with its current price resting below $86,000. As of this writing, Bitcoin is trading at $85,365, reflecting a 1.4% decrease over the past day and a roughly 11.8% drop over the past week.
Featured image created with DALL-E, Chart from TradingView
