Bitcoin hits 23,000 as miner sales hit multi-year low

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Bitcoin continued its uptrend by pushing its price above the USD 23,000 level, a positive signal amid miners who reduced sales of their mined coins. On-chain flows reported by Bitifinex analysts indicate that the amount of Bitcoin moved from Bitcoin mining addresses to wallets owned by cryptocurrency exchanges has declined to multi-year lows.

Bitcoin transfer volume from miners to exchanges. | Source: Bitcoin ArchiveLow selling power, favorable for a BTC rally

Bitcoin miner sales are at a three-year low, according to a Bitfinex analyst. The report claims that the selloff could be a sign that Bitcoin miners are in the mood to hoard coins as they expect the flagship cryptocurrency to soar in price.

Declining Bitcoin sales from mining companies means low selling pressure from these market participants. Hence, this signals an uptrend for the overall market.

Analysts, however, said Bitcoin’s recent price rally may see a correction as investors attempt to recoup profits amid the current price spikes.

Analysts have identified large wallets (>$1 million) as the primary culprits for Bitcoin accumulation. They further stated that these wallets, along with major market players, are the ones creating the buying pressure that comes after the FTX saga and a series of bearish events typically seen in the past year.

Analysts mentioned that since the second week of January, the number of wallets with $1,000 and $10,000 of Bitcoin has increased. The analyst further acknowledged that the trading activities of retail investors accompanied the bullish trend.

According to the figure above, Bitcoin’s current weak selling pressure coincided with November’s weakest selling of last year. The current low level signals a green (bullish) indicator for the cryptocurrency.

When miners sell more BTC, it implies a drop in the value of the coins. Conversely, when mining companies do not feel like selling, it suggests a bullish trend for the crypto market.

Today’s Bitcoin Price

Bitcoin has increased in value by almost 40% this month, trading at $22,909, up 1.48% on Tuesday. The crypto is trading at levels not seen since the fall of the FTX exchange. BTC volume stands at around $26.82 billion, an increase of 12.78% in the last 24 hours, according to Coinmarketcap.

BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

As highlighted above, Bitcoin’s rise in value could be attributed to whales engaged in hoarding coins amid soaring prices. The uptrend is also seen in the global crypto market cap, which is trading higher around $1.06 trillion, up 1.27% in the past 24 hours, according to Tradingview.

Featured image from Unsplash, chart from TradingView.

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