Bitcoin miners have yet to display any major signs of capitulation, with on-chain data consistently indicating a positive outlook, according to analysts at Bitfinex Alpha in a recent research report.
Despite ongoing macroeconomic challenges and a 32% decline from Bitcoin’s all-time high in 2024, analysts observed that miner reserves have remained steady. As of May 5, reserves stood at 1,808,674 BTC, showing minimal change from December 2024 levels. This stability points to a conservative holding strategy, with miners avoiding significant sell-offs.
“Given that miners typically need to liquidate a portion of their holdings to finance operational expenses — such as electricity, maintenance, and salaries — their continued restraint from selling speaks volumes about expectations of future price appreciation.”
Bitfinex Alpha stated.
The analysts highlighted that miners holding onto the recent 32% rebound from the April lows reinforces the notion that, despite recent volatility and macroeconomic uncertainty, “we may not have seen the final phase of the current bull cycle.”
The Puell Multiple, an important gauge of miner profitability, remains significantly below historically high levels, reinforcing that miners have little incentive to sell. Values above two usually signal increased selling pressure, but the current Puell Multiple indicates that substantial miner sell-offs are unlikely.
The stability of reserves and low selling pressure support the view that Bitcoin miners maintain confidence in the asset’s long-term growth potential. While the market is still vulnerable to short-term fluctuations, the underlying signals indicate that the current cycle may have further room to expand, with miners holding their positions expecting additional upside, according to the analysts.
In another development, Bitfinex is partnering with Tether, SoftBank, and Cantor Fitzgerald to launch a $3 billion Bitcoin investment vehicle. The venture, 21 Capital, will be publicly traded, with Bitfinex contributing $600 million, while Tether and SoftBank add $1.5 billion and $900 million, respectively, according to the Financial Times.
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