- Bitcoin price has surged by 25% since the launch of the spot Bitcoin ETF in the United States and significant Bitcoin accumulation by large whales in 2024.
- The Crypto Fear & Greed Index has reached an “Extreme Greed” level with a value of 76, indicating a potential cryptocurrency market sell-off in the next few days.
- Bitcoin mining difficulty has reached 81.73T, and according to BTCcom data, the network hash rate has nearly doubled in the last 12 months, increasing from an average of 303 EH/s to 577 EH/s.
The increasing demand for spot Bitcoin ETFs has rapidly boosted BTC price: Will the growing pressure from Bitcoin miners hinder the price rise?
Bitcoin Price Rises with Spot Bitcoin ETF Demand
Bitcoin price has surged by 25% since the launch of the spot Bitcoin ETF in the United States and significant Bitcoin accumulation by large whales in 2024. The combination of low BTC supply and rising mining difficulty suggests the potential for an increase in block size, forcing miners to sell their assets.
The Crypto Fear & Greed Index has reached an “Extreme Greed” level with a value of 76, indicating a potential cryptocurrency market sell-off in the next few days. The increase in Bitcoin block size, along with a 40-50% increase in Bitcoin network activity due to BTC’s recent rally, is confirmed by a CryptoQuant-verified analyst. Ordinarily, an increase in the block size leads to an increase in fees, often causing fees to rise.
However, the lack of a significant fee increase suggests that the increase in block size is attributed to high-volume BTC buying or selling. While mining difficulty and block size are different concepts, an increase in block size indirectly affects mining competition as miners spend more time.
Bitcoin mining difficulty has reached 81.73T, and according to BTCcom data, the network hash rate has nearly doubled in the last 12 months, increasing from an average of 303 EH/s to 577 EH/s. The increase in block size, rising mining difficulty, and BTC price could force miners to sell BTC assets.
In particular, the Bitcoin Miners Position Index (MPI) indicates high selling pressure from miners, causing concern among analysts and investors. Historically, when MPI is high, and miners’ reserves are low, BTC price has experienced a correction.
What is the current situation of miner reserves?
Currently, miner reserves have dropped to the lowest level in three years due to spot Bitcoin ETFs and significant market demand. Exchange reserves are also approaching the critical level of 2 million BTC, which has been maintained until the end of November.
On Friday, spot Bitcoin ETFs recorded a net inflow of $323.90 million, reaching nearly $5 billion in inflows since the launch. The BTC price has experienced a slight decrease in the last 24 hours, currently trading at $51,800, representing a 2.13% decrease from the intraday high. The 24-hour low and high are $51,641 and $52,537, respectively. Additionally, the trading volume has decreased by over 40% in the last 24 hours, dropping to $19.89 billion, indicating a reduced interest among traders. Analysts like Ali Martinez also predicted a possible decline in the next few days if bearish pressure intensifies and support doesn’t hold.
