In the past week, various dormant miner wallets tracing back to the Satoshi era executed significant Bitcoin (BTC) transfers. Typically, when miners liquidate their Bitcoin holdings, particularly in large quantities, it can create selling pressure and trigger a price decline. Nevertheless, despite the recent selling actions by miners, BTC surged by more than 7%, peaking at $64,043 on Friday.
Bitcoin Miner Sales Maintain Price Stability as 100-Day EMA Reaches Annual Low
On Friday, five wallet addresses that were last active during the Satoshi era, referring to the early days after Bitcoin’s launch, transferred a total of 250 BTC, worth approximately $15.9 million, to new addresses. Each of these wallets received 50 BTC as rewards for mining per block back in 2009.
Although these unexpected Bitcoin transactions sparked speculation within the crypto community, they did not substantially impact Bitcoin’s upward price trend. A CryptoQuant analyst known as Darkfost notes that the recent surge in outflows from early miners has had a neutral impact on prices, due to a consistently decreasing 100-day EMA.
In this scenario, the 100-day exponential moving average serves to gauge the average selling activity of early miners over the past 100 days, helping to identify trends and detect price momentum. Data from CryptoQuant indicates that the latest sales by early BTC miners have not changed the trajectory of the 100-EMA, which is currently at a yearly low.
Consequently, these outflows, while noteworthy, are not capable of generating significant selling pressure that could impact BTC’s price in the short or medium term.
BTC Climbs by 124% Despite Challenging Mining Metrics
In related news, Bitcoin has shown remarkable price growth despite unfavorable conditions for miners. Per the Bitcoin ChainCheck report from asset management firm VanEck, the top cryptocurrency has experienced a 124% increase in its Year-To-Date (YTD) value, elevating its market dominance to roughly 56%.
However, during this timeframe, VanEck notes that the Bitcoin hash price, which indicates the revenue miners earn for each unit of computational power allocated to mining BTC, has plummeted by 97%, revealing low miner profitability in addition to increased mining difficulty.
As of this writing, BTC is trading at $63,146, reflecting a slight 0.23% increase over the last 24 hours. Nonetheless, its daily trading volume has dropped by nearly 60% and currently stands at $14.1 billion. On the daily chart, Bitcoin is encountering resistance around the $64,000 threshold. A breakthrough above this level could signal a rally towards the $70,000 range. Conversely, a lack of sufficient buying pressure could lead to a decline towards the $54,000 level.
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