While the Bitcoin price is reaching new highs, some miners are selling to take profits, market indicators show the potential for further gains.$BTC
As the Bitcoin price reached a new high, surpassing the $93,500 level for the first time in its history, large-scale miners sold some of their Bitcoins in an attempt to make a profit.
According to CryptoQuant data, during this rally, some major Bitcoin miners took the opportunity to sell:
“Some large Bitcoin miners have sold to take profits as the price tests new highs. While the amount sold remains low for now, around 2,000 Bitcoins were sold last week and this trend is important to follow.”
According to CryptoQuant’s data, the Miner Position Index (MPI) was at 0.89 during the US presidential elections, but after the index increased to 3.56 and is currently at 1.81.
MPI shows the ratio of miners’ outflows to the annual moving average. High MPI values indicate that miners are sending more Bitcoin than usual, which is a possible sell signal.
Despite the recent sell-off by miners, CryptoQuant analysts note that Bitcoin’s valuation metrics are still not overvalued:
“At current price levels, valuation indicators such as the Market Value to Realized Value (MVRV) ratio suggest that Bitcoin is not overvalued, which could make a target of up to $100,000 possible.”
There are also signs that investor demand is continuing to grow, with analysts noting that interest from U.S. investors has increased significantly since the presidential election.
Liquidity in the crypto market is also improving with stablecoin inflows. The upward movement in the Tether (USDT) market cap is seen as a sign of new capital inflows that could support crypto prices.
Analysts stated that there has been a net USDT inflow of $3.2 billion into the exchanges since the presidential elections, and that this increase in liquidity contributed positively to the rise in the Bitcoin price.