CryptoQuant CEO Predicts Bitcoin Bullish Momentum to Persist Despite Miner Sell-Off

Amid Bitcoin's ongoing bullish trend and the approach of the fourth halving event, miners have initiated selling their Bitcoin holdings to capitalize on their business operations, aiming to reinvest in additional equipment to enhance profitability. Ki Young Ju, the CEO of CryptoQuant, recently shared insights in a post on March 13, presenting a graph illustrating miners' selling activity dating back to 2012. He observed that unless there's a slowdown in exchange-traded fund (ETF) inflows, the current bull market is expected to persist.

In a subsequent post, the CEO highlighted that the predominant Bitcoin sellers are not U.S.-based mining firms at present. Instead, he suggested that the leading sellers are likely offshore entities or seasoned miners.

Before halving events, Bitcoin miners frequently sell their holdings to lock in profits, manage price volatility risks, diversify their assets, and reinvest in mining infrastructure. This activity tends to heighten market volatility in the lead-up to and aftermath of halvings.

Despite the increased selling activity by miners, analysts remain optimistic about Bitcoin's upward trajectory. They cite significant inflows of fresh capital through spot ETFs, which are expected to support Bitcoin's price momentum. Coinbase Research analysts even argue that the current surge in prices marks just the beginning of a prolonged bull run, noting the transformative impact of multi-billion dollar net inflows into spot Bitcoin ETFs over a short period.

Despite Bitcoin miners recording record daily revenues of $78.6 million, surpassing previous highs seen during the 2021 bull market, the performance of public mining companies presents a mixed picture.

According to Hashrate Index data, only three out of the 26 public Bitcoin miners have posted positive returns year-to-date: CleanSpark (CLSK) with a gain of 51.5%, Investview (INVU) with a 25.7% increase, and Northern Data (NB2.DEX) with a rise of 7.52%. The impending fourth halving of Bitcoin, expected in mid-April this year, will reduce the block reward from 6.25 BTC to 3.125 BTC.