Bitcoin Breaks $45,000 Amid Easing Miner Selling Pressure
Bitcoin surged past the $45,000 mark on Thursday, signaling a bullish momentum in the cryptocurrency market. The uptrend comes as on-chain data indicates a reduction in miner selling pressure, contributing to the asset's upward trajectory.
According to insights from CryptoQuant, on-chain analytics reveal that major U.S. publicly traded bitcoin mining companies have been steadily increasing their bitcoin holdings. Marathon Digital, for instance, has shown consistent growth in its bitcoin reserves over the past few months, as depicted in CryptoQuant's real-time charts.
In its weekly report, CryptoQuant highlighted a significant decline in mining selling pressure following a period of heightened sales in November and December 2023. The report noted a decrease in daily selling by miners from over 800 bitcoins to below 300 bitcoins in early 2024.
Analysts at CryptoQuant observed that miners are holding onto their reserves despite a decline in profits from bitcoin network fees. Despite a 90% decrease in daily fees since December, miners have maintained low selling pressure. The decline in fees correlates with reduced network activity, stemming from fewer transactions associated with inscriptions and BRC20 token mints.
Data from CryptoQuant also indicates a drop in the number of transactions on the bitcoin network, from a daily all-time high of 731,000 in late December to a current three-month low of 278,000. Additionally, rewards for miners, which include payments for producing valid blocks and processing transactions, have decreased from a multi-year high recorded in December, according to The Block's Data Dashboard.
The combination of reduced miner selling pressure and a decline in network activity suggests a stabilization in the bitcoin market, paving the way for renewed investor confidence and price appreciation. As bitcoin continues to demonstrate resilience amidst evolving market dynamics, stakeholders remain optimistic about its long-term prospects in the cryptocurrency landscape.