CryptoQuant CEO predicts Bitcoin’s bullish momentum will endure in spite of miners’ sell-off.
As the highly anticipated fourth halving event for Bitcoin approaches, miners have been observed selling off their Bitcoin holdings, according to CryptoQuant. These miners are capitalizing on the current bull run of Bitcoin and are using the proceeds to purchase more equipment for their mining operations. CryptoQuant CEO, Ki Young Ju, shared a graph illustrating the selling activity of miners since 2012 and stated that the bull market is likely to continue unless there is a slowdown in the inflow of exchange-traded funds (ETFs).
In a subsequent post, the CEO noted that the main sellers of Bitcoin are not U.S. mining companies, but rather offshore or older miners. It is common for miners to sell their holdings before halvings to ensure profitability, reduce price volatility risks, diversify their assets, and reinvest in mining infrastructure. This increased selling activity by miners typically leads to greater market volatility in the period leading up to and following halvings.
However, analysts remain optimistic that the selling activity by miners will not hinder the upward momentum of Bitcoin, thanks to the significant inflow of fresh capital through spot ETFs. Coinbase Research analysts have even suggested that the current price surge is just the beginning of a longer bull run, highlighting the transformative impact of multi-billion dollar net inflows into spot Bitcoin ETFs over the past two months.
Despite achieving record daily revenues of $78.6 million, surpassing the previous peak set during the 2021 bull market, public mining companies are not experiencing the same level of success. Data from Hashrate Index shows that out of the 26 public Bitcoin miners, only three have posted positive returns this year: CleanSpark (CLSK) with a 51.5% gain, Investview (INVU) with a 25.7% increase, and Northern Data (NB2.DEX) with a 7.52% rise.
The fourth halving of Bitcoin is expected to occur in mid-April this year, reducing the block reward from 6.25 BTC to 3.125 BTC. Despite this upcoming event, the general sentiment remains positive for the future of Bitcoin as it continues to attract significant attention and investment.
