As bitcoin surged to a new all-time high above $93,500 on Wednesday, some large-scale miners have taken the opportunity to realize profits, selling a portion of their holdings amid the rally, according to CryptoQuant data.
"Some large bitcoin miners have reduced their holdings as the price reached new all-time highs to take some profits. Although the amount of selling is still small, around 2,000 bitcoin in the last week, it is important to keep monitoring," CryptoQuant analysts told The Block.
Miners' Position Index (MPI) went from 0.89 around the time of the U.S. presidential election, since then it has increased to a 3.56, before pulling back to a current reading of 1.81, according to CryptoQuant data. The MPI is the ratio of total miner outflow to its one-year moving average of total miner outflow in U.S. dollars. Higher value shows that miners are sending more coins than usual to exchanges which indicates possible selling.
The bitcoin miners' position index (MPI) has increased since the U.S. presidential election. Image: CryptoQuant.
Despite recent selling by miners, CryptoQuant analysts maintain that bitcoin’s valuation metrics indicate it is not yet overvalued. "At current price levels, valuation metrics like the Market Value to Realized Value (MVRV) ratio don’t indicate that bitcoin is overvalued, suggesting it could soon target $100,000," CryptoQuant analysts said.
Analysts also highlight signs of sustained demand growth, with more investors entering the market. U.S. investor interest has picked up notably since the presidential election, as evidenced by the Coinbase bitcoin price premium. "U.S. investor demand is increasing as evidenced by the Coinbase bitcoin price premium turning positive again," CryptoQuant analysts added.
Liquidity in the crypto market has also been improving, driven in part by stablecoin inflows. The market cap of Tether (USDT) has been trending upwards, signaling fresh capital inflows that can support higher crypto prices. Since the election, a net $3.2 billion in USDT has flowed into exchanges, increasing market liquidity and contributing to a positive outlook for bitcoin’s price trajectory, CryptoQuant analysts said.
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