Miners are an integral part of the Bitcoin network and as new supplies come in, it can be important to track what miners are doing with their coins in order to predict where the market might go. Given this, Ki Young Ju, 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 Capitulating
In the analysis that was published On X (formerly Twitter), Ki Young Ju revealed that Bitcoin Miners are still in capitulation mode. This shows that these miners have given in to the current market trend, which is still bearish, and this could continue for some time.
As Cryptoquant CEO points out, there are situations that would require this capitulation to end, and one of them is the percentage of the daily average of BTC mined compared to the total BTC mined each year. Usually, this end of capitulation occurs when the daily average BTC mined is at 40% of the annual average.
However, the daily average compared to the annual average is still well above the needs, currently standing at 72% at the time of reporting. Given this, the CEO does not believe that capitulation of the miners This will end soon.
Ki Young Ju instead advises investors to commit for the long term. According to him, the price of bitcoin The market remains optimistic in the long term. However, not much is expected to happen in the next 2-3 months, calling the markets “boring” during this period. He advises investors to also avoid taking too much risk during this period.
BTC remains strong
The cryptocurrency CEO’s stance on Bitcoin hasn’t changed much, despite market headwinds. In another article, he analysis the movement of Mt. Gox 47,000 BTC, which had raised concerns among investors. However, unlike the broader market, Cryptoquant CEO does not believe this will negatively affect the price.
According to him, the Mt. Gox transaction, What had sparked debate was in reality only an internal transfer. Furthermore, even if it were a sale transaction, it would likely be an over-the-counter transaction, which would have little or no effect on the market as a whole.
Finally, these transactions did not actually go through brokers or exchanges, so the supply was not impacting the market price. Additionally, given that there has not been a significant spike in volume, this indicates that Mt. Gox’s sales are not driving the market.
Featured image created with Dall.E, chart by Tradingview.com
