Bitcoin Miners Begin Accumulation Phase

Bitcoin (BTC) miners might have started a new accumulation phase that could leverage several fresh catalysts, according to analyst Valentin Fournier speaking to The Block.

Miners’ Activity

Fournier noted that in addition to accumulating mining rewards, mining firms are also buying bitcoin from the market to bolster their reserves. He mentioned that this activity has triggered the Hash Ribbon signal, a bullish long-term indicator that points to the end of miner capitulation and an increase in processing power used for mining.

One prominent miner, MARA, formerly known as Marathon Digital, announced a recent purchase of an additional $100 million worth of bitcoin.

Potential for New All-Time High

The latest mining activity signifies confidence in bitcoin’s long-term value. Fournier believes that continued accumulation will encourage traders to invest in the top cryptocurrency. He cited catalysts such as a favorable Personal Consumption Expenditures (PCE) report, Trump’s speech at Bitcoin 2024, and reduced selling pressure from Mt. Gox and Grayscale ETF, suggesting that these factors could propel bitcoin toward a new all-time high.

Recent data from CryptoQuant shows a significant increase in the seven-day moving average of mean coin inflow into miner wallets, with over 1,900 bitcoins received in the past week from mining rewards and market purchases.

Catalysts Driving Bitcoin Higher

Ben El-Baz, Managing Director at HashKey Global, identified Donald Trump’s newfound advocacy for bitcoin as a key catalyst. He stated that Trump believes bitcoin could exceed gold in market value, though this would require significant historical opportunities and time. El-Baz referenced Trump’s upcoming speech at Bitcoin 2024, where he plans to enhance energy supply and develop the U.S. shale oil market to bolster U.S. leadership in AI and bitcoin.

El-Baz even remarked on the potential for bitcoin’s price to reach $1 million in the future.

As of the latest data, bitcoin’s price saw a 3% increase over 24 hours, trading at $69,625 at 6:46 a.m. ET, according to The Block’s Price Page.