bitcoin is trading around $57,500 after a volatile session triggered by the release of CPI data. Amidst the market turbulence, Axel Adler, a macro and blockchain researcher at CryptoQuant, shared an interesting observation regarding bitcoin and mining stocks.
According to Adler, there is a strong correlation between the price of bitcoin and the stock index of public mining companies, as highlighted in a chart from CryptoQuant. This suggests that any movement in the price of bitcoin could directly affect the value of mining companies’ shares.
With investors holding high expectations for bitcoin’s performance in the coming months, the btc price will likely play a crucial role in determining the fate of both mining companies and btc-related stocks. With market sentiment fluctuating, the relationship between bitcoin and mining stocks remains a key factor that investors need to keep an eye on.
bitcoin miners expect a rally
After weeks of extreme fear, volatility, and uncertainty, bitcoin (btc) is regaining momentum, with investors increasingly optimistic about future gains. This renewed confidence is especially strong among bitcoin miners, particularly those tied to public miner stocks, whose performance is closely tied to bitcoin price movements.
A detailed x.com/AxelAdlerJr/status/1833495634432901136″ target=”_blank” rel=”noopener nofollow”>CryptoQuant Report Macro and on-chain analyst Axel Adler highlights how the growth of mining company stocks is highly dependent on bitcoin’s price action. This relationship became especially evident during the 2021-2022 bull run, when both btc and mining company stocks soared in unison.
While this correlation has sparked renewed interest in mining stocks, it also raises concerns among analysts. bitcoin’s price has yet to confirm a clear uptrend or recovery since the market crash in March, leaving miners in a cautious position.
Miners have reacted by gradually reducing their btc holdings, a sign of caution amid potential price concerns. On-chain data shows that miner balances have been steadily declining since early September.
btc&m=distribution.BalanceMinersSum” target=”_blank” rel=”noopener nofollow”>Glassnode Data reveals a gradual decline in bitcoin held by miners since September 2, with the total miner balance currently at around 1.8 million btc, valued at roughly $99 billion at current prices.
If this selling pressure from miners continues, it could significantly impact the price of bitcoin in the short term, as increased supply from miners selling their coins tends to put downward pressure on prices.
On the other hand, other market factors, such as positive regulatory news or increased institutional adoption, could provide a bullish catalyst for bitcoin, boosting both btc and mining stocks. Ultimately, the evolution of these factors will determine whether bitcoin and related stocks can maintain the current momentum or face new challenges in the future.
bitcoin Price Action Details
bitcoin (btc) is currently trading at $58,219 after experiencing a volatile day yesterday. The price has increased by over 10% since September 6 and is now testing a crucial resistance level.
If this resistance breaks, it could signal further price appreciation. btc is just 1.26% away from the 4-hour 200-day exponential moving average (EMA) at $58,758, a key technical indicator that has acted as resistance since early August.
A short-term trend reversal is likely to occur if btc breaks this resistance and successfully tests it as support. For the bulls to gain strong momentum, the price needs to break above $60,000, a significant psychological level that many investors consider a turning point.
However, if btc fails to close above these critical levels in the coming weeks, a deeper correction could follow, with the potential for lower prices being the next logical scenario in the current market environment.
Featured image of Dall-E, chart from TradingView
