Predicting the Next Bull Run in Bitcoin and Ethereum: Key Indicators to Watch
Bitcoin and Ethereum miners have seen a decrease in the supply held in their wallets since the first half of 2024. This decline in holdings has recently rebounded, indicating a potential rally in these assets. Both Bitcoin (BTC) and Ethereum (ETH) are currently hovering around crucial support levels as of Friday.
The process of crypto mining involves introducing new Bitcoin and Ethereum into circulation. Data from a crypto intelligence tracker reveals that wallets belonging to Bitcoin and Ethereum miners experienced a reduction in their asset holdings during the initial part of the year. Analysts suggest that a resurgence in these holdings could serve as a precursor to a bull run for these two cryptocurrencies.
According to analysts at Santiment, a crypto intelligence tracker, a recovery in the BTC and ETH holdings within miners’ wallets could signify an upcoming bull run. The supply held by Bitcoin mining wallets has decreased by 4% from its peak in April, with a current holding of 2.14 million BTC. Similarly, Ethereum mining wallets are holding 1.18 million Ether tokens, down 4.5% from their peak in 2024. Analysts posit that a rise in the supply held by mining wallets could indicate an impending bull run for these assets.
Miners typically sell their holdings to cover operational expenses, adding selling pressure that can impact asset prices negatively. However, if miners reduce the amount of supply sold or transferred to exchanges and retain their BTC and ETH assets, it could alleviate selling pressure and hint at potential gains for the cryptocurrencies.
Therefore, an increase in the supply held by mining wallets is viewed as a promising indicator of an approaching bull run. Presently, Bitcoin is trading at $57,940, while Ether is at $2,349. Traders are also monitoring other signals such as Bitcoin dominance in relation to altcoins and the performance of the top 50 altcoins by market capitalization against Bitcoin for further insights into a potential bull run in either BTC or altcoins.
