Bitfinex Says Bitcoin Miners Show No Signs of Capitulation as Structural Signals Remain Positive
Despite the uncertainties in the macroeconomic environment, Bitcoin miners are showing confidence in future growth as their stable reserves indicate faith in the market's further development.
In a recent research report, analysts at Bitfinex Alpha noted that Bitcoin (BTC) miners have shown no signs of capitulation, and blockchain data continues to point to a positive outlook.
They emphasized that despite macroeconomic instability and a 32% decline from Bitcoin's all-time high in 2024, miner reserves remain stable. As of May 5, reserves amounted to 1,808,674 BTC, indicating minimal fluctuations compared to December 2024 data, suggesting a cautious holding strategy in which miners avoid serious selling.
“Given that miners often need to sell off some of their assets to finance operating expenses,
such as electricity, maintenance and wages, their permanent restriction on sale
“This speaks volumes about the forecasts for future price increases.”Bitfinex Alpha
Analysts noted that the fact that miners continue to hold on to their recent 32% recovery from April lows supports the idea that, despite recent volatility and macroeconomic uncertainty, “we may not have reached the endgame of the current bull cycle yet.”
Puell Multiple | Source: Coinglass You might also like: Bitcoin Mining Could Power the U.S. If Regulators Give It Priority | Opinion
The Puell Multiple, a key indicator of miner profitability, also remains well below historically high levels, further confirming that miners have little incentive to sell. Typically, values above 2 signal increased selling activity, but the current Puell Multiple level suggests that large-scale selling by miners is unlikely.
These stable reserves and low selling pressure support the idea that Bitcoin miners remain confident in the asset’s potential for future profits. While the market remains susceptible to short-term fluctuations, structural signals suggest that the current cycle may still have room to grow as miners hold their positions in anticipation of further gains, the analysts explain.
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Source: cryptonews.net
