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NewsBTC 2025-01-10 03:30:51

Survival Of The Strongest: Bitcoin Miners Face Tough Choices As Selling Pressure Mounts

Bitcoin journey in the new year continues to demonstrate less upward momentum, with its price recently dropping below the $95,000 price mark. Amid this movement, the market seems to be witnessing a notable trend among miners as they grapple with the effects of rising values and selling pressure. Insights from XBTManager, a CryptoQuant contributor, shed light on the challenges facing Bitcoin miners and the broader implications for the cryptocurrency market. Related Reading: Bitcoin May Rally In Q1 2025 Driven By US Fed’s Money Printing, Predicts Arthur Hayes Miners Feel the Pressure As Bitcoin Remains Below $100K In a post titled “The Strong Remain, the Weak Exit the Market,” XBTManager highlighted that Bitcoin’s appreciation has placed miners in a “precarious” position. The recent price surge above $100,000 initially brought substantial gains for miners, but subsequent corrections have intensified selling activity. According to the analysis, miners have entered a state where their positions are “extremely underpaid,” leading to significant financial strain. XBTManager wrote: Following a sharp pullback in Bitcoin’s price, it entered a correction phase and rose again to the 102k levels, only to trigger another wave of heavy selling. As Bitcoin climbed to 102k, miner positions, which were in a “fairly paid” state, transitioned to an “extremely underpaid” state as selling pressure intensified at that level. Notably, as weaker miners exit the market, those with greater resilience are expected to persist, potentially opening opportunities for investors. XBTManager’s outlook suggests that assuming the current bull market remains intact, the ongoing challenges for miners could present favorable conditions for strategic buying. MVRV Indicator Hints At Bitcoin’s Continued Growth Potential Another CryptoQuant contributor, CryptoOnchain, offered an additional perspective on Bitcoin’s market cycle. Analyzing the 100-day MVRV (Market Value to Realized Value) ratio, CryptoOnchain argued that Bitcoin has “yet to reach its peak” for this cycle. Historical data shows that the MVRV ratio reached a value of 3 during the market tops in the last two cycles. At present, this ratio stands at 2.14, indicating potential for further upward movement. 100-day moving average of MVRV: Bitcoin has not yet reached the top price of this cycle “MVRV metric reached the value of 3 at the market tops in the past two cycles, whereas it currently stands at 2.14… it can be said that Bitcoin is preparing to move towards the top price of… pic.twitter.com/YlNLQwgE3w — CryptoQuant.com (@cryptoquant_com) January 9, 2025 The MVRV metric, which helps identify market tops and bottoms, signals that Bitcoin may be preparing for another price surge in the coming months. Related Reading: Bitcoin Faces Mixed Signals: Institutional Investors Accumulate Amid Retail Weakness If the pattern from previous cycles holds true, Bitcoin could be on track to approach a new peak before the current cycle concludes. CryptoOnchain particularly concluded by noting: Based on this, it can be said that Bitcoin is preparing to move towards the top price of this cycle, which is likely to occur in the coming months. Featured image created with DALL-E, Chart from TradingvIEW

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