Over the past week, several dormant miner wallets from the Satoshi era, which had remained inactive for a long time, transferred a considerable amount of Bitcoin (BTC). Typically, large Bitcoin sales by miners can create selling pressure that leads to a price decline. Nevertheless, in spite of this recent miner activity, BTC surged over 7%, reaching a peak price of $64,043 on Friday.
Bitcoin Miner Sales Maintain Price Stability As 100-Day EMA Reaches Annual Low
On Friday, five wallet addresses that were last active in the early Satoshi era, shortly after Bitcoin’s inception, transferred a total of 250 BTC, worth approximately $15.9 million, to new wallets. Each of these wallets had been credited with 50 BTC as mining rewards per block back in 2009.
While these unexpected Bitcoin transactions sparked considerable speculation in the crypto sphere, they had little to no impact on Bitcoin’s upward price trend. A CryptoQuant analyst by the name of Darkfost indicates that the recent increases in early miners’ outflows have resulted in a neutral effect on price due to a consistently declining 100-day EMA.
In this context, the 100-day exponential moving average serves to gauge the average selling activity of early miners over the past 100 days, aiding in identifying trends and assessing price momentum. Data from CryptoQuant shows that Darkfost points out these recent sales by early BTC miners have not changed the trajectory of the 100-day EMA, which currently stands at a yearly low.
Thus, while these outflows are notable, they do not create sufficient selling pressure to significantly influence BTC’s price in the short or medium term.
BTC Increases By 124% Despite Weak Mining Fundamentals
In related news, Bitcoin has shown impressive price growth despite weak miners’ fundamentals. The Bitcoin ChainCheck report published by asset manager VanEck reveals that the flagship cryptocurrency has surged 124% in its Year-To-Date (YTD) performance, resulting in a market dominance of approximately 56%.
However, during this time, VanEck indicates that the Bitcoin hash price, which assesses the revenue miners earn for each unit of computational power utilized in mining BTC, has plummeted by 97%, reflecting poor miner profitability in conjunction with increased mining difficulty.
As of this writing, BTC is trading at $63,146, showing a slight 0.23% gain in the last 24 hours. Yet, its daily trading volume has dropped by 59.99%, now at $14.1 billion. On the daily chart, Bitcoin is encountering resistance near the $64,000 threshold. A decisive breakout past this point could facilitate a rally toward the $70,000 zone. Conversely, a lack of buying pressure might lead to a decline toward the $54,000 level.
Featured image from Simplilearn, chart from Tradingview
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