Leading cryptocurrency exchange Bitfinex says spot buying pressure is high but volatility should be expected.
Reports also indicate that Bitcoin's recent price rally is coming largely from spot buying pressure.
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Bitcoin miners refuse to sell BTC after miner sales reach multi-year low
As Bitcoin reaches $23,000, miners have begun preserving their mined profits instead of selling. According to Bitfinex, selling pressure from crypto miners has decreased to a three-year low.
From Bitfinex’s latest blog:
The miners are also in better shape. Selling is now at a three-year low.
Miners are hodling their Bitcoin because they anticipate further rises.
Although miners are holding onto their bitcoin, this could imply that miner selling pressure has yet to return.
It's not unusual for crypto miners to hold onto profits for so long, especially during a bear market, but given BTC's recent surge, some miners may take the plunge and sell.
Bitfinex also addressed crypto whales, stating that "considerable accumulation" is taking place. The blog mentioned that most large investors like whales won’t sell their spot positions until their portfolios have increased “50-80 percent.”
Bitcoin's recent surge has been called a "bounce" by cryptocurrency traders, who expect the coin to plummet in the coming weeks, possibly to lows of $15,000 or $10,000. Nobody knows when it will happen or if the prediction will come true, but bets are on the table for multiple traders and observers in the industry.