Timing the Next Bitcoin Bull Run: Analytics Firm Highlights Key Indicators

The potential start of the next bull run for Bitcoin could be indicated by the behavior of Bitcoin miners, according to insights from on-chain analytics firm Santiment.

In a recent post on X, Santiment delved into the “Supply held by Miners” metric, which tracks the total supply residing in wallets linked to Bitcoin miners. When this metric increases, miners accumulate more tokens in their wallets as they receive rewards for solving blocks. While it is common for miners to receive coins regularly, significant and prolonged net inflows can signal a trend of HODLing by miners, which can have a positive impact on the price.

Conversely, a decline in this metric suggests miners are moving a net amount of coins out of their wallets, potentially for selling purposes. While miners typically sell coins to cover operational expenses like electricity bills, the recent consistent selling behavior has been notable and may have contributed to Bitcoin’s consolidation phase.

The decrease in the Bitcoin Supply held by Miners, as illustrated in a chart spanning the past few months, indicates a continuous outflow of coins from miner wallets. This ongoing selling pressure, exacerbated by the fourth Halving event in April that halved the block subsidy, has put miners under financial strain, leading to sustained selling activity.

Santiment highlights that a reversal in the Supply held by Miners could signal a shift towards accumulation by miners, potentially heralding the onset of the next bull run for Bitcoin.

As of the latest data, Bitcoin is trading at approximately $58,200, reflecting a 6% increase over the past week. The price chart indicates a recent upward trend, suggesting positive momentum in the market.

In conclusion, monitoring the behavior of Bitcoin miners and their supply dynamics can provide valuable insights into potential market movements and the timing of the next significant price rally for Bitcoin.