Bitcoin’s recent surge to a new all-time high of $90K has prompted many market participants to take profits, with miners notably contributing to the selling pressure.
The Miners Position Index (MPI), which gauges miners' selling pressure, has surged past the critical level of 2, marking a yearly high. Values above 2 typically signal intensified selling pressure from miners. This spike suggests that miners are offloading a substantial portion of their holdings, likely to cover operational costs given Bitcoin’s elevated price levels.
Since miners hold a considerable share of Bitcoin’s supply, their increased selling can intensify overall selling pressure, especially if it coincides with a reduction in demand. However, in the current context—where market participants have already been profit-taking at ATH levels—there is an increased risk of price corrections. Without sufficient buy-side support in the short term, the market may experience a deeper retracement as the selling continues.
Written by ShayanBTC
