Bitcoin (BTC) miners have held onto their stash. The trend ensues as Bitcoin has managed to regain ground above $63,000.
According to Salman Khan, Marathon Digital Holding’s CFO, the mining giant hasn’t sold any of its 18,536 Bitcoins, which are worth over $1 billion, as of this writing.
Selling pressure from Miners drop
Khan highlighted that Bitcoin has been “outperforming other asset classes” with a return rate of over 150%. He noted that Marathon expects the price of the flagship cryptocurrency to go up from its current level.
He added that several “market dynamics” need to be considered when considering selling BTC. Price fluctuations in the short term also impact this decision. As such, he reiterated Marathon’s decision to hold, stating:
We don’t need to sell Bitcoin every month.
The mining giant’s BTC holdings are currently up 8% from 2023’s total of 12,538.
A similar trend has been observed across the entire mining sector. Data from Glassnode reveals that miners’ selling activity has dropped since the April 2024 halving event.
This is in line with Marthaon’s stance, suggesting that miners are optimistic about Bitcoin’s long-term price growth potential.
CryptoQuant data further confirms this trend. The Miners’ Position Index (MPI), which measures the total miner outflow (USD) ratio to its one-year moving average, currently stands at -1.3.
Bitcoin Miner’s Position Index chart. Source: CryptoQuant.
A lower MPI typically means that selling pressure from miners has reduced and is usually considered an indicator of an upcoming bullish trend.
Zach Bradford, CEO of mining firm CleanSpark, also echoed a stance similar to Marathon’s. According to the executive, CleanSpark views holding BTC more as a strategic move based on the “current environment.”
Bradford said Bitcoin’s price is expected to be “volatile” in the short term, but an upward rally is anticipated “over the long term.”
He added that the firm’s has been accumulating since June 2023 and has grown its treasury, which now stands at over 6500 Bitcoin.
Bitcoin miner Riot Platforms has also held onto its BTC stash since January, currently owning 9084 BTC.
Considering that Marathon, Riot and CleanSpark are the top three Bitcoin miners by market capitalisation, the overall trend among the top miners seems to be accumulation.
Bitcoin regains momentum
As previously reported by Invezz, Bitcoin has recovered from its two-month low of $53,500 on July 4. At the time of writing, the cryptocurrency was priced at $63,980, up 5% over the past 24 hours.
According to analysts, the recovery was prompted by several factors, including the conclusion of the German Bitcoin sell-off and the completion of repayments from the defunct crypto exchange Mt. Gox.
Another key factor was the shooting incident involving presidential hopeful Donal Trump, which was directly followed by a price rally for BTC.
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