From attaining a six-figure market price to a sudden market crash, Bitcoin has remained the major headliner in the crypto market over the past week. Among these rapid developments on the largest digital asset, blockchain analytics company Santiment has observed a massive decline in mining balance.
Bitcoin Miners Offload 85,503 BTC In 48 Hours
On Friday, Santiment shared a report on Bitcoin mining wallets activity in correlation to the asset’s price. According to the analytics firm, there has been a consistent decrease in the Bitcoin collective mining balances since April 2024 indicating that miners have been gradually selling their BTC or moving funds to another wallet.
However, Santiment states these mining wallets have now transferred out 85,503 BTC, valued at $8.56 billion, over the last 48 hours, which represents the largest drop in miner balances since late February prior to Bitcoin’s surge to $73,000.
Generally, increased outflows from miners could indicate a bearish shift in price momentum. However, the team at Santiment postulates the recent BTC offload should be considered a net-neutral signal with no inking on Bitcoin’s price movement.
This notion is based on Bitcoin miner balances showing a weak correlation with price for the majority of 2024. Moreover, non-mining whales and sharks continue to accumulate Bitcoin signaling confidence among investors in the asset’s profitability despite miner activity.
Interestingly, popular crypto analyst Ali Martinez recently provided some update on this accumulation trend stating that BTC whales have acquired 20,000 BTC, valued at $2 billion, over the past 24 hours.
Nevertheless, the constant decline in miner balances remains an important concern for Bitcoin investors. Aside from an ability to induce a bearish sentiment, miners transferring out BTC may draw speculations over mining profitability, which is critical to sustaining the Bitcoin network.
Bitcoin Price Overview
At the time of writing, Bitcoin trades at $100,119 following a 3.67% price increase in the past 24 hours. On larger time frames, Bitcoin is equally in profit as evidenced by gains of 2.92% and 32.60% in the last seven days and 30 days, respectively.
The largest digital asset is preparing to face minor resistance at $102,000 following an earlier rejection. If the market bulls are able to produce a breakout, Bitcoin maintains a prolonged price rally that began in early October.
Based on previous bull cycles, the premier cryptocurrency is touted to gain by an average of 38.86% in December, with the potential to trade as high as $140,000 before 2024 runs out.
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