After a prolonged downturn, Bitcoin’s price has increased by 3% in the past 24 hours, trading at $69,625. The ongoing accumulation by miners and supportive external factors indicate a promising outlook for the largest digital asset by market cap.
Bitcoin miners may have initiated a new accumulation phase, according to BRN lead analyst Valentin Fournier. Speaking to The Block, Fournier noted a sharp increase in the seven-day moving average of bitcoin inflow into miners’ wallets, as reported by CryptoQuant. This uptick suggests that mining firms are not only holding onto their mining rewards but also purchasing additional bitcoin from the market to boost their reserves.
Moving in, Fournier further highlighted the triggering of the Hash Ribbon signal, a long-term bullish indicator signifying the end of miner capitulation and an increase in mining power. Marathon Digital, now rebranded as MARA, is one such miner actively purchasing Bitcoin, recently acquiring an additional $100 million worth of the cryptocurrency. This move indicates strong confidence among miners in Bitcoin’s long-term value.
Fournier believes that this accumulation behaviour points to a bullish outlook for Bitcoin. Traders are likely to remain invested in anticipation of several catalysts, including the release of cooler PCE data, Donald Trump’s supportive speech at Bitcoin 2024, and the easing of selling pressure from Mt. Gox and the Grayscale ETF. These factors could potentially drive Bitcoin to new all-time highs.
However, Ben El-Baz, Managing Director at HashKey Global, identified Trump’s advocacy for Bitcoin as a significant driver. Trump’s belief in Bitcoin’s potential to surpass gold and his plans to enhance the U.S. energy supply and support domestic shale oil production could bolster U.S. leadership in artificial intelligence and Bitcoin. El-Baz also suggested that Bitcoin’s price reaching $1 million is not impossible, given the right conditions.
Also Read: Bitcoin Bulls Eye $92k, Ethereum Struggles to Confirm Trend And Solana Targets $200
Crypto pundit Ali Martinez noted on the X platform that Bitcoin miner capitulation seems to have ended, indicated by a shift in the Glassnode Hash Ribbon. This signal shows a positive cross of the 30-day hash rate above the 60-day hash rate, suggesting a recovery phase for Bitcoin. Historically, the end of miner capitulation often leads to significant price increases, making it a potentially good buying opportunity.
Bitcoin is approaching $70,000, after hitting a six-week high. Despite this price surge, BTC trading volume has dropped by 33%, with a market cap of $1.37 trillion. Meanwhile, this surge follows former U.S. President Donald Trump’s recent endorsement of cryptocurrency. Additionally, Trump has announced plans to establish a strategic Bitcoin reserve if elected in November.
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