Bitcoin Heads to $50,000 As Selling Pressure Decreases: Bitcoin’s price is going up and getting closer to $45,000. This increase is mainly because fewer people are selling Bitcoin, especially miners, who have reduced how much they sell each day from more than 800 Bitcoin at the end of 2023 to less than 300 Bitcoin at the start of 2024.
This change shows that miners are adjusting their strategy for how much Bitcoin they hold. Big Bitcoin mining companies in the US are seeing an increase in the amount of Bitcoin they own.
Bitcoin Miners Resist Selling Despite Profit Declines
Even though miners are making less money than they have in a long time, they’re not rushing to sell their Bitcoin. Data from CryptoQuant shows that miners aren’t getting paid as much as they’d like, but they still choose to keep their Bitcoin instead of selling it right away.
Furthermore, the network saw fewer transactions lately. It went from a high of 731,000 per day in late December 2023 to a low of 278,000 over three months. This drop happened mostly because there were fewer people signing up and fewer transactions with a certain type of token called BRC-20. These transactions, which use taproot addresses, decreased by 76%. As a result, the fees for Bitcoin transactions went down a lot, by 90%, between mid-December and early February.
“According to CryptoQuant, despite miners making less money than usual in 2024, they haven’t been selling much of their cryptocurrency, which is unusual. Miners have mostly been earning very little this year.”
More big investors, called “whales,” are buying more Bitcoin, which is making its price go up. LookOnChain, a platform that studies Bitcoin activity, says there have been big transactions, like one where 2,741 Bitcoins (worth about $118 million) were taken out of Binance right before the price went up.
The decrease in selling and big buyers gathering more Bitcoins has helped push Bitcoin’s price up toward $45,000. Right now, Bitcoin is trading around $44,451, which is about 3.61% higher than it was 24 hours ago.
Well-known Bitcoin expert PlanB shared a positive view, pointing out that the average price at which Bitcoin has been traded in the past is going up. He suggested that the current trend, where prices are higher than this historical average, shows a strong upward momentum similar to the start of previous periods of rising prices.
“Bitcoin’s price is rising, surpassing other prices, which indicates a positive trend. In the beginning of every strong market, prices tend to rise, with Bitcoin consistently staying ahead. While it’s not certain, this suggests that Bitcoin might not drop below $40,000 in the future,” stated Plan B.
PlanB thinks that Bitcoin’s price might never drop below $40,000 again, based on how it’s been performing recently compared to past prices.
Disclaimer: The information on this website isn’t meant to be taken as advice for investing money. Investing involves uncertainty, and there’s a chance you could lose your money when you invest.
