Bitcoin Remains Resilient Despite Satoshi-Era Miner Sales, Here’s Why

In
the
last
week,
multiple
miner
wallets
dormant
from
the
Satoshi
era
transferred
out
a
significant
amount
of
Bitcoin
(BTC).
Generally,
when
miners
sell
their
Bitcoin,
especially
in
a
significant
proportion,
it
can
induce
selling
pressure
leading
to
a
price
drop.
However,
despite
recent
miner
selling
activity,
BTC
rallied
by
over
7%
hitting
a
top
price
of
$64,043
on
Friday.

Bitcoin
Miner
Sales
Remain
Price
Neutral
As
100-Day
EMA
Hits
Yearly
Low

On
Friday,
five
wallet
addresses
last
active
in
the
Satoshi
era
i.e.
the
earliest
days
following
the
creation
of
Bitcoin,
moved
a
combined
250
BTC,
valued
at
$15.9
million
to
new
wallets.
These
wallets
had
each
received
50
BTC
as
mining
rewards
per
block
in
2009.

While
these
sudden
Bitcoin
transactions
generated
much
speculation
in
the
crypto
community,
there
was
no
significant
effect
on
Bitcoin’s
positive
price
trajectory.
Commenting
on
this
development,
a
CryptoQuant
analyst
with
username
Darkfost
explains
that
the
latest
spike
in
early
miners’
outflows
has
exerted
a
neutral
price
effect
due
to
a
consistently
falling
100-day
EMA.

In
this
context,
the
100-day
exponential
moving
average
helps
to
measure
the
average
selling
activity
of
early
miners
over
the
last
100
days,
and
can
be
used
to
identify
trends
and
detect
price
momentum.
According
to
data
from
CryptoQuant,
Darkfost
highlights
that
the
latest
sales
by
the
early
BTC
miners
have
failed
to
alter
the
path
of
this
100-EMA
metric
which
is
currently
at
its
yearly
low.

Therefore,
these
outflows,
while
significant,
are
unable
to
produce
a
sizable
selling
pressure
that
could
affect
BTC’s
price
now
or
in
the
medium
term.

BTC
Up
By
124%
Despite
Poor
Mining
Metrics

In
other
news,
Bitcoin
has
produced
a
splendid
price
performance
amidst
poor
miners’
fundamentals.
According
to
the
Bitcoin
ChainCheck
report
by
asset
manager
VanEck,
the
leading
cryptocurrency
had
gained
on
its
Year-To-Date
(YTD)
value
by
124%
bringing
its
market
dominance
to
around
56%.

However,
during
this
period,
VanEck
explains
that
the
Bitcoin
hash
price
which
measures
the
amount
of
revenue
miners
earn
per
unit
of
computational
power
used
for
mining
BTC
had
crashed
by
97%
indicating
low
miner
profitability
alongside
heightened
mining
difficulty. 

At
the
time
of
writing,
BTC
is
trading
at
$63,146,
reflecting
a
0.23%
gain
over
the
past
24
hours.
However,
its
daily
trading
volume
has
declined
by
59.99%
and
currently
stands
at
$14.1
billion.

On
the
daily
chart,
Bitcoin
is
facing
resistance
around
the
$64,000
mark.
A
decisive
breakout
above
this
level
could
pave
the
way
for
a
rally
toward
the
$70,000
range.
On
the
downside,
insufficient
buying
pressure
could
result
in
a
price
slide
to
the
$54,000
level.