On-chain analysts have spotted a significant behavior in Bitcoin miners’ activity this year.
The miner-to-exchange transfer rate has dropped despite Bitcoin’s rally.
Analysts consider recent miners’ behavior a bullish signal for Bitcoin.
On-chain analysts have noticed a key trend in Bitcoin miners’ behavior this year. Even with the rise in BTC price, the miner-to-exchange transfer rate has significantly decreased, suggesting that BTC miners are choosing to keep their coins. At the same time, a JP Morgan analyst noted that August saw the lowest-ever Bitcoin mining profitability, while the U.S. share of network hashrate climbed to a record 26%.
JUST IN 🚨: According to a JPMorgan analyst, August saw the lowest ever #Bitcoin mining profitability. Meanwhile, the U.S. portion of network hashrate soared to a record 26%. Stay ahead of the curve with us. #CryptoNews #Blockchain
— THΞ FΞNNΞC (@FennecSpirit) August 16, 2024
Historically, Bitcoin miners tend to transfer more BTC to centralized exchanges during price rallies. This pattern suggests a profit-taking move as miners capitalize on the increasing value of the flagship cryptocurrency.
This year’s pattern tells a different story. Analysts observe that miners have held onto newly mined coins, demonstrating growing confidence in the Bitcoin market. Many Bitcoin users see this move by miners as a sign of a potential price increase for the cryptocurrency.
It is worth noting that Bitcoin maintains a 35% year-to-date profit despite recent price swings. However, miners have resisted selling, suggesting improved financial stability and efficiency in the mining sector.
Notably, Bitcoin miners based in the U.S. are major contributors to the sustainability and efficiency of the mining sector, according to the cited report from JP Morgan. The rising numbers from registered U.S. miners in August marked four months of continuous growth, highlighting their strengthening position within the global Bitcoin mining industry.
Analysts view the miners’ recent sentiment pattern as a positive development for Bitcoin, especially given the recent price volatility that pushed BTC below $60,000. Many users believe the price is consolidating and gearing up for a significant rally. Bitcoin was trading at $59,113 at the time of writing, according to data from TradingView.
The post Bitcoin Miners Buck Trend, Hold Onto Coins Despite Price Rise appeared first on Coin Edition.
