Bitcoin Surges Above $46,000 Amid Crypto Miner Sell Pressure Ease
In Brief
Bitcoin’s price surpassed $46,000 as selling pressure from crypto miners eased, further supporting the positive trend.
Decentralized cryptocurrency Bitcoin (BTC) reached a new multiweek high, surpassing $46,000, and is now just $2,000 below the new yearly highs. At the same time, on-chain data suggests a gradual easing of selling pressure from miners, further supporting the observed positive trend.
According to the data analytics company CryptoQuant, on-chain data indicates a consistent upward trend in the Bitcoin holdings of major publicly traded Bitcoin mining companies in the United States. Marathon Digital’s charts specifically demonstrate a steady increase in its Bitcoin holdings over the past few months.
There has been a notable decline in mining selling pressure following a period of elevated sales in November and December of 2023. The data indicates a substantial decrease, with daily miner sales dropping from over 800 Bitcoins per day during the mentioned period to below 300 Bitcoins daily in the early months of 2024.
CryptoQuant analysts noted that miners are retaining their reserves despite a decrease in profits from Bitcoin network fees. Despite a substantial 90% decline in daily fees from the near-record highs observed in December, the sell pressure from Bitcoin miners has remained low throughout the early months of 2024. The report attributes this pronounced decline in fees to reduced network activity, stemming from fewer transactions originating from inscriptions and BRC20 token mints.
Furthermore, data from CryptoQuant reveals a notable reduction in the number of transactions on the Bitcoin network, dropping from a daily all-time high of 731,000 in late December to a current three-month low of 278,000. While the rewards received by miners for generating valid blocks and facilitating transactions have experienced a decrease from the multi-year high observed in December.
Bitcoin’s Upward Trend Influenced by Multiple Factors
The price of Bitcoin rebounded this week, surpassing the $45,000 mark, and the ensuing volatile price movement led to the liquidation of over $49 million in leveraged Bitcoin positions, according to Coinglass data.
The world’s largest cryptocurrency by market capitalization increased by over 4% in the past 24 hours, reaching $46,600 as of the writing time.
The asset’s increase in value also mitigated previous losses tied to the launch of Bitcoin exchange-traded funds (ETFs), coinciding with the S&P500 and Nasdaq indices reaching all-time highs earlier in the week. Additionally, in the coming days, the cryptocurrency might experience further upward movement considering its historical tendency to register gains during the Chinese New Year period.
The recent price mark of Bitcoin indicates a positive trend for the cryptocurrency, influenced by multiple factors.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
