Miners are an integral part of the bitcoin network, and since new supply comes through them, it can be important to keep track of what miners do with their coins in an effort to predict where the market will head next. With this in mind, Ki Young Ju, founder of analytics platform Cryptoquant, has followed the behavior of bitcoin miners, placing them in a capitulation trend and predicting what the market could do in the future as a result of this.
bitcoin miners continue to capitulate
In the analysis that was carried out x.com/ki_young_ju/status/1810713273995555259″ rel=”nofollow” target=”_blank”>aware On x (formerly twitter), Ki Young Ju revealed that bitcoin miners are still in capitulation mode. This shows that these miners have given up on the current market trend, which is still bearish, and that this could continue for a while.
As Cryptoquant’s CEO points out, there are situations that would call for an end to this capitulation, and one of them is the percentage of the daily average of btc mined compared to the total btc mined annually. Typically, this end of capitulation occurs when the daily average of btc mined is at 40% of the annual average.
However, the daily average compared to the annual average is still much higher than necessary, and currently stands at 72% at the time of reporting. Given this, the CEO does not believe that the miners' capitulation will end anytime soon.
On the contrary, Ki Young Ju advises investors to make sure they are prepared for the long term. According to him, the bitcoin price is still bullish in the long term. However, in the next 2-3 months, not much is expected to happen, calling the markets “boring” during this time. He advises investors to avoid taking too many risks during this time as well.
btc continues to hold strong
The crypto CEO’s stance on bitcoin hasn’t changed much from bullishness despite market headwinds. In another post, he analyzed the movement of Mt. Gox’s 47,000 btc, which had raised concerns among investors. However, unlike the broader market, the Cryptoquant CEO doesn’t think it will negatively impact the price.
According to him, the Mt. Gox transaction, What had sparked debate was simply an internal transfer. Furthermore, even if it were a sale transaction, it would likely be an OTC deal, which would have little or no effect on the broader market.
Lastly, these transactions were not actually conducted through brokers or exchanges, so the supply did not affect the market price. Furthermore, since there was no significant increase in volume, this indicates that Mt. Gox sales are not driving the market.
Featured image created with Dall.E, chart from Tradingview.com
