New research indicates a significant decrease in the selling pressure from Bitcoin BTC/USD miners, suggesting a potential upward trend for the cryptocurrency market in the near future.
This shift comes as the market digests the sell-off from miners who have been offloading Bitcoin to cover operational costs following the halving event, according to CryptoQuant.
Miners’ Role in Market Fluctuations
Miners have been a substantial force behind recent market declines, selling Bitcoin in over-the-counter (OTC) transactions due to decreased profitability.
The Bitcoin halving, which reduced mining rewards by half, rendered older mining equipment less cost-effective, leading to a reduction in mining activity and an increase in the need for miners to sell Bitcoin to sustain operations.
CryptoQuant’s data shows a notable reduction in the amount of Bitcoin being transferred out of miners’ wallets. This trend suggests that the intense selling pressure from miners is easing.
If the market can absorb this reduced volume of selling, it may set the stage for a continued upward rally in Bitcoin prices.
Positive Outlook For Q3 2024
CryptoQuant’s analysis points to a more optimistic outlook for the cryptocurrency market moving into the third quarter of 2024.
The decreased selling pressure from miners is a crucial factor in this positive forecast.
If the current absorption of sell-offs continues, it could bolster Bitcoin’s price and potentially trigger a broader market rally.
Also Read: Coinbase Sues SEC And FDIC Over Alleged Attempts To Stifle Crypto Industry
Wang Yang’s Perspective On Mining And Digital Assets
Adding to the narrative, Wang Yang, Vice President of the Hong Kong University of Science and Technology, on Thursday spoke at the Hashkey New Vision 1 event, emphasizing the strategic importance of cryptocurrency mining and digital assets.
Yang criticized the notion of banning mining, highlighting the $4 billion in tax revenue generated for the United States.
He suggested that Hong Kong should leverage state-owned enterprises to participate in mining to ensure risk control while benefiting from the industry’s economic contributions.
Yang also pointed out the need for Hong Kong to embrace digital assets more actively.
“It is unwise to ban mining and give $4 billion in tax revenue to the United States,” Yang stated, advocating for a more proactive approach to integrating digital assets into Hong Kong’s economic framework.
The reduction in miners’ selling pressure coincides with broader discussions on regulatory and economic strategies surrounding digital assets, which will be discussed at length at Benzinga’s Future of Digital Assets conference on Nov.19.
Read Next: China’s Crypto Mining Ban Was ‘Very Unwise,’ Says Hong Kong Academic
Image created using artificial intelligence with Midjourney.
