Despite the price correction since Bitcoin hit a new all-time high, analysts believe the bull market remains on.
Bitcoin miners have resumed selling BTC following the flagship asset reaching a new all-time high. On-chain data analytics provider CryptoQuant noted that outflows from miners reached 16,000 BTC on July 15.
According to the firm, this has been the largest outflow from miners since April 7. With the miners moving all the BTC to exchanges, CryptoQuant noted that they might have sold in reaction to BTC’s new all-time high.
It said:
“The total miner outflows, transfers of Bitcoin out of miners’ wallets, spiked to 16K BTC on July 15, representing an extreme outflow according to our metrics.”
The recent selloffs by miners have already been reflected in the Miner Position Index (MPI) surge, according to crypto analyst Avocado_Onchain. The analyst noted that the MPI, which indicates miners’ transfer to exchange, has increased to 2.7, which could bring more short-term selling pressure to the market.
Meanwhile, miners are not the only ones selling BTC at the present top. CryptoQuant data noted that overall Bitcoin transfers to exchanges have increased since BTC hit the $123,000 peak, with whales being a major driver for the spike.
CryptoQuant stated:
“Total daily Bitcoin exchange inflows surged from 19K Bitcoin a week ago to 81K BTC on July 15, after Bitcoin reached its most recent record-high price.”
Data shows that whales are responsible for this increase, with the large BTC holders sending 58,000 BTC this week compared to 13,000 last week. These fund movements reflect profit-taking efforts by whales capitalizing on retail investors’ resurgent interest in Bitcoin.
For miners, most of whom have been holding on to mined BTC to boost their BTC treasury, the selloff over the past week is likely them taking advantage of the price to quickly generate more cash flow.
ETH sees spike in exchange deposits
Interestingly, it was not only Bitcoin that saw increased exchange inflows in the past week. Even Ether, which recently returned to green for the first time this year, appears to be experiencing some selloffs already.
CryptoQuant data shows that daily Ether inflows to exchanges reached almost 2 million ETH on July 16, the highest level since February. This shows that the 131% rally that ETH has experienced since April has finally returned it to a price where investors are open to selling.
However, altcoin inflows transactions were relatively muted, contrary to what usually follows market rallies such as this. It is a sign that investors are not rushing to sell, likely because most altcoins remain within minimal gains or even small losses year-to-date, making it unattractive for investors to sell.
BTC declines, but analysts believe the crypto market rally remains on
Meanwhile, the recent selloffs have led to a price correction that has seen BTC drop from its peak to $118,000 while altcoins such as Ethereum, Solana, and XRP also recorded a similar drop in value.
However, most market observers consider the decline a mere correction rather than the end of the market rally. Avocado_Onchain noted that the effect of miners selling will depend on whether it is a one-off or sustained event.
He said;
“While this spike in MPI suggests the possibility of short-term correction or sideways price action, it remains far below the extreme levels typically observed at the end of previous bull cycles.”
Therefore, he believes the “mid-to-long term bullish outlook for Bitcoin remains intact” and expects that the flagship asset will continue to trend upward for the time being as the underlying factors support this trajectory.
Other analysts also share this view, with on-chain analyst Crypto Dan also noting no sign of overheating in the market compared to March and December 2024. Thus, the crypto market might still see new highs in the second half of the year.
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