Bitcoin miners are already withdrawing their Bitcoin from these wallets as Bitcoin reaches record market values. According to CryptoQuant, miner transactions rose on November 12; Bitcoin reached $90,000, and close to $2.2 billion worth of BTC left mining pool wallets. Such a huge flow of funds may have been occasioned by mean reversion among miners seeking to lock profits as Bitcoin continues to rise in price.
CryptoQuant’s data tracking miner outflows, which capture BTC moved by individual miners and mining entities from the mining pool wallet, have provided information that miners’ approach has changed. Onchain analyst Avocado_onchain said that during bullish market conditions, miners started to rotate some of their Assets, aiming at the next Bitcoin cycle and the next halving. The next halving 2025 will reduce mining pay in half in terms of Bitcoins and can affect miners’ income and the market’s circulating supply.
Current above-average miners’ activity corresponds to historical tendencies in realizing profits in the bull phase. As the Bitcoin price increases and reaches new heights, the miners always prepare for a bear market, but at the same time, they ensure they secure as many profits as possible during the existing bull market. @Avocado_onchain pointed out that this profit-taking is not a sign of a bear run and further highlighted that the hashrate of Bitcoin and mining difficulty point to higher network participation that can be friendly for the price appreciation.
However, it’s still unclear if miners transfer their funds exclusively for selling purposes while experiencing large outflows. CryptoQuant has pointed out that outflows do not necessarily mean they sell; there could be purposes for exchanging BTC for other assets to fund operational or security activities or transferring Bitcoin to exchange for the above purposes.
The Best Bitcoin’s Bull Run to End for Further Improvement
Some market analysts have continued to predict higher BTC prices despite the recent ample miner outflows. Ryan Lee, the chief analyst at Bitget Research, highlighted November as the month Bitcoin performed best. I intimated to Lee in an interview that for Bitcoin to hit the $100,000 mark, it would require a rise of only 14.7% from the current levels by month’s end.
Further to the cheer, analysts at Bitfinex, a digital currency exchange in the British Virgin Islands, pointed to an observation that political events such as Donald Trump’s election in the U.S. could spur demand for digital assets. Trump’s friendly business policies may lead to higher take-up of crypto products among institutions and individuals, thus creating a perfect environment for Bitcoin’s ongoing bullish run, as stated by Bitfinex.
As Bitcoin prices continue to rise, miner activity will show more restraint as they prepare for the halving. This new trend reveals that miners are taking strategic measures to manage their assets as the cryptocurrency market cycle continues. Analysts will pay attention to this movement in the coming months to understand whether this trend signals an impending correction or a bullish run to new highs for Bitcoin.
