Bitfinex Says Bitcoin Miners Show No Signs of Capitulation as Structural Signals Remain Positive
Despite the macroeconomic uncertainty, Bitcoin miners are showing confidence in future growth as stable reserves confirm their belief in the market's further development.
In a recent research report, analysts at Bitfinex Alpha noted that Bitcoin (BTC) miners have shown no significant signs of capitulation, and blockchain data continues to point to a positive outlook.
They emphasized that despite economic instability and a 32% decline from Bitcoin's all-time high in 2024, miner reserves remain stable. As of May 5, reserves amounted to 1,808,674 BTC, indicating little fluctuation compared to December 2024 levels, indicating a cautious holding strategy with miners avoiding significant selling.
“Considering that miners often have to sell off some of their assets to finance operating expenses,
such as electricity, maintenance and wages, their permanent restriction on sales
“This speaks volumes about the forecasts for future price increases.”Bitfinex Alpha
Analysts added that the fact that miners continue to hold on to their recent 32% recovery from April lows supports the view that despite recent volatility and macroeconomic uncertainty, “we may not have reached the endgame of the current bull cycle yet.”
Puell Multiple | Source: Coinglass You might also like: Bitcoin Mining Could Power the U.S. If Regulators Give It Priority | Opinion
The Puell Multiple, an important indicator of miner profitability, is still well below its historical highs, again confirming that miners have little incentive to sell. While values above 2 typically signal increased selling activity, the current Puell Multiple suggests that a major sell-off by miners is unlikely.
These stable reserves and low selling pressure support the idea that Bitcoin miners remain confident in the asset’s potential for future profits. While the market remains subject to short-term fluctuations, structural signals indicate that the current cycle may still provide opportunities for growth as miners hold their positions in anticipation of further gains, the analysts explain.
Read more: Bitcoin miners could profit more from AI than cryptocurrency, Novogratz's Galaxy Digital suggests
Source: cryptonews.net
