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CryptoQuant Analyst Says “I Expect a Bull Rally in Bitcoin”, Explains Why

CryptoQuant Analyst Says “I Expect a Bull Rally in Bitcoin”, Explains Why

BitcoinsistemiBitcoinsistemi2024/10/29 03:33
By:Mete Demiralp

A metric may be signaling a bull rally in Bitcoin price, according to cryptocurrency analytics firm CryptoQuant.

Cryptocurrency analytics firm CryptoQuant recently shared its observations of Bitcoin’s market dynamics, explaining key signals that point to a potential price increase.

According to the firm, Bitcoin miners are holding their assets strategically, indicating confidence in an impending price increase.

“We have consistently emphasized the importance of miners’ actions within the Bitcoin network, as these key participants play a key role in every cycle and often drive increased price volatility,” CryptoQuant’s analysis said. Miners are important participants in the Bitcoin ecosystem, often adjusting their sales patterns to market conditions, affecting supply and influencing price trends.

CryptoQuant’s report noted that during market cycles, miners typically sell Bitcoin to cover operational costs, especially as halving approaches — a process that halves the rewards miners receive for verifying transactions, thereby reducing the supply of new Bitcoin. However, during periods of stagnation, miners often choose to accumulate Bitcoin instead of selling to take advantage of future price increases.

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The Miner Position Index (MPI), a key metric, shows that miners are currently holding onto their Bitcoin, with minimal movement to exchanges for liquidation. Historically, a rebound in the MPI from lows has been linked to significant price increases for Bitcoin. CryptoQuant suggests that this trend could signal an impending rally.

CryptoQuant also noted a significant rebound in block rewards per block, indicating that transaction activity on the Bitcoin network is increasing. The analytics firm says higher transaction volumes typically coincide with significant price increases and reinforce the possibility of a bullish trend.

*This is not investment advice.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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