Miners are an integral part of the Bitcoin network, and since new supply comes through them, it can be important to track what miners are doing with their coins in an attempt to predict where the market might go in the future. Given this, Ki Young Joo, founder of analytics platform Cryptoquant, has been tracking the behavior of Bitcoin miners, putting them in a capitulation trend, and predicting what the market might do in the future as a result.
Bitcoin Miners Still Giving Up
In the analysis that was done It was published. On X (formerly Twitter), Ki Young Joo revealed that Bitcoin miners are still in surrender mode. This shows that these miners have surrendered to the current market trend, which is still bearish, and this may continue for a while.
As the CEO of Cryptoquant points out, there are situations that call for this capitulation to end, and one of them is the ratio of average daily bitcoins mined to total annual bitcoins. This capitulation usually occurs when the average daily bitcoins mined reach 40% of the annual average.
However, the daily average compared to the annual average is still well above what is required, currently standing at 72% at the time of writing. Given this, the CEO does not believe that the miner capitulation will end anytime soon.
Instead, Ki Young-joo advises investors to prepare for the long term. According to him, Bitcoin price is still bullish in the long term. However, not much is expected in the next two or three months, describing the markets as “boring” during this time. He advises investors to avoid excessive risk during this time as well.
Bitcoin price remains strong
The Cryptoquant CEO’s stance on Bitcoin hasn’t changed much from bullish despite the market headwinds. In another post, he analyzed the 47,000 BTC move in Mt. Gox, which has raised concerns among investors. However, unlike the broader market, the Cryptoquant CEO doesn’t think it will negatively impact the price.
According to him, Mt. Gox transaction, Which sparked controversy, was just an internal transfer. Moreover, even if it is a sell trade, it will likely be an off-exchange trade, which will have little impact on the broader market.
Finally, these transactions were not actually conducted through brokers or exchanges, so the supply did not affect the market price. Furthermore, since there was no significant spike in volume, this indicates that Mt. Gox sales are not driving the market.
Featured image created using Dall.E, chart from Tradingview.com