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Bitcoin is showing signs of recovery after a brief but sharp dip triggered by recent market turbulence linked to public tensions between Donald Trump and Elon Musk. The price of BTC had dropped to nearly $100,000 during the height of the reaction, but has since rebounded.
At the time of writing, Bitcoin is trading at $104,891, marking a steady recovery from the 24-hour low. While the broader crypto market continues to digest the fallout, new data suggests that another force, miner activity, is beginning to shape the near-term outlook.
Bitcoin Surge in Miner Inflows Could Pressure Price Action
According to on-chain analytics published by CryptoQuant contributor CryptoOnchain, Bitcoin miners have dramatically increased the volume of BTC transferred to exchanges.
Between May 19 and May 28, miner-to-exchange inflows exceeded $1 billion per day, levels not seen in previous market cycles. These inflows are often viewed as a proxy for miners’ intent to sell, which could influence short-term supply dynamics and introduce added volatility to BTC’s spot market performance.
The rise in realized inflows from miners to exchanges is interpreted as a sign of growing sell-side pressure. Since miners are key liquidity providers in the Bitcoin ecosystem, large-scale transfers to exchanges are typically seen as preparations to offload BTC.
Historically, spikes in miner outflows have preceded periods of downward price pressure, particularly when they occur alongside fragile market conditions.
CryptoOnchain emphasizes that while miner selling isn’t inherently negative, it can impact short-term price stability. As a result, traders and investors often monitor these flows to better assess potential risks.
When miner inflows surge, it reflects the sector’s sentiment regarding profitability, operational stress, or anticipated price changes. CryptoOnchain noted:
Paying close attention to these inflows—especially during historical peaks like the current phase—can help with risk management and more informed trading decisions.
Hash Ribbon Signal Suggests Longer-Term Opportunity
Amid rising sell pressure, another indicator is flashing a potential opportunity. CryptoQuant analyst Darkfost noted that Bitcoin’s Hash Ribbons indicator, a metric derived from comparing 30-day and 60-day moving averages of network hashrate, has recently produced a new buy signal.
This metric is used to evaluate miner stress and recovery phases, and is generally interpreted as a signal that miners have gone through a period of capitulation and are now stabilizing or recovering. This signal has historically aligned with favorable long-term entry points, except in unique events like China’s 2021 mining ban.
While the short-term effects of mining stress may contribute to price weakness, analysts suggest that these periods often set the stage for longer-term rallies. When miner capitulation resolves, it can clear excess supply from the market and establish stronger support levels.
Featured image created with DALL-E, Chart from TradingView
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
