Miners are an integral part of the Bitcoin network and since new supply comes through them, it can be important to track what the miners are doing with their coins in an effort to predict where the market might be headed next. Given this, Ki Young Ju, founder of the analytics platform Cryptoquant, has tracked Bitcoin miner behavior, placing them in a capitulation trend and predicting what the market might do going forward as a result of this.
Bitcoin Miners Are Still Capitulating
In the analysis that was posted on X (formerly Twitter), Ki Young Ju revealed that Bitcoin miners are still in capitulation mode. This shows that these miners have given in to the current market trend, which is still bearish, and this might continue for a while.
As the Cryptoquant CEO points out, there are situations which would call for the end of this capitulation, and one of those is the percentage of the average daily mined BTC in comparison to the total BTC mined yearly. Usually, this end of capitulation happens when the average daily mined BTC is sitting at 40% of the yearly averaged.
However, the daily average compared to the yearly average is still way higher than needed, currently sitting at 72% at the time of the report. Given this, the CEO does not believe the miner capitulation will end anytime soon.
Rather, Ki Young Ju advises investors to strap in for the long term. According to him, the Bitcoin price is still bullish in the long term. However, in the next 2-3 months, not much is expected to happen, calling the markets “boring” during this time. He advises investors to avoid too much risk during this time as well.
BTC Still Holding Strong
The crypto CEO’s stance on Bitcoin has not shifted much from bullish despite the market headwinds. In another post, he analyzed the movement of the Mt. Gox 47,000 BTC, which had sparked worry among investors. However, unlike the broader market, the CEO of Cryptoquant does not believe it will negatively affect price.
According to him, the Mt. Gox transaction, which had sparked debate, had simply been an internal transfer. Furthermore, even if it was a sale transaction, it was likely to be an OTC deal, which would have little to no effect on the broader market.
Lastly, these transactions were actually not going through brokers or exchanges, so the supply wasn’t impacting the market price. Furthermore, given that there was no significant spike in volume, it points to the fact that Mt. Gox sales aren’t driving the market.
Featured image created with Dall.E, chart from Tradingview.com
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