Since miners are an integral part of the Bitcoin network and new supply comes through them, tracking what miners are doing with the coin can be crucial in predicting where the market will go next. With this in mind, Ki Young Ju, founder of analytics platform Cryptoquant, has been tracking Bitcoin miner behavior to put miners in a surrender trend and, as a result, predict what the market might do going forward.
Bitcoin Miners Still Capitulating
In an analysis posted on X (formerly Twitter), Ki Young Ju revealed that Bitcoin miners are still in capitulation mode, indicating that these miners have succumbed to the current market trends, which are still bearish and may continue for some time to come.
As Cryptoquant’s CEO points out, there are circumstances that require an end to this surrender, one of which is the percentage of average BTC mined per day compared to the total BTC mined in a year: Typically, the end of this surrender occurs when the average BTC mined per day reaches 40% of the annual average.
However, the daily average compared to the annual average is still higher than necessary, standing at 72% at the time of reporting. Given this, the CEO doesn’t expect mining companies’ capitulation to end anytime soon.
Instead, Ki Yong-ju advises investors to prepare for the long term. According to him, Bitcoin prices are still bullish in the long term. However, he does not expect any major changes in the next two to three months, and the market is “boring” at this time. He advises investors to avoid excessive risks during this time as well.
BTC remains strong
The cryptocurrency CEO’s stance on Bitcoin has not changed significantly from bullish despite the market headwinds. In another post, he analyzed the Mt. Gox 47,000 BTC move that caused anxiety among investors. But unlike the market at large, the CryptoQuant CEO doesn’t believe it will have a negative impact on the price.
According to him, Mt Gox trading, The controversial personnel changes were purely internal. Furthermore, even if there is a sale transaction, it is likely to be an over-the-counter transaction and is likely to have little impact on the market as a whole.
Finally, these trades did not actually go through a broker or exchange, so the supply did not impact market price. Additionally, the lack of a significant spike in trading volume indicates that the Mt. Gox sell-off is not driving the market.
Featured image created by Dall.E, chart taken from Tradingview.com
