BRN analyst says miners appear to be accumulating bitcoin

Bitcoin miners may have kicked off a new accumulation phase in a step to potentially benefit from a range of fresh catalysts, an analyst said.

Speaking to The Block, BRN lead analyst Valentin Fournier said that on top of accumulating mining rewards, mining firms appear to be purchasing bitcoin straight from the market to increase their reserves. "They have triggered the Hash Ribbon signal, a long-term bullish indicator highlighting the end of miner capitulation and the increase of the processing power used to mine bitcoin," he added. One such miner involved in large scale bitcoin purchases is MARA, recently rebranded from Marathon Digital, that announced on Thursday it has purchased an additional $100 million worth of bitcoin.

Bitcoin could reach new all-time high

Fournier said that the recent behavior from miners suggests confidence in bitcoin’s long-term value. In light of the accumulation behaviour, Fournier added that traders would be inclined to stay invested in the top cryptocurrency, citing a range of strong catalysts. "The release of cooler PCE on Friday, Trump's speech at Bitcoin 2024, and the easing of selling pressure from Mt. Gox and the Grayscale ETF suggests a strong rally will bring bitcoin to a new high," the BRN analyst added.

According to the latest data from CryptoQuant, the seven-day moving average of mean coin inflow into affiliated miner wallets has sharply increased. Over 1,900 bitcoins have flowed into miner wallets in the past week, comprising coins received as a reward for mining, and coins purchased recently by miners via the market.

The seven-day moving average of mean coin inflow has increased. Image: CryptoQuant.

Catalysts that could drive bitcoin higher

According to HashKey Global Managing Director Ben El-Baz, the main catalyst driving bitcoin at the moment is Donald Trump's conversion to become a major advocate for the cryptocurrency. "Trump believes that bitcoin has the potential to surpass gold in market value in the future, though this would require numerous historical opportunities and a long period of time," El-Baz said.

Referring to Trump's speech at Bitcoin 2024 in Nashville at the weekend, El Baz added that the former U.S. president now plans to enhance energy supply and develop the U.S. domestic shale oil market to reduce reliance on international energy, "thereby ensuring U.S. leadership in artificial intelligence and bitcoin."

"Although bitcoin’s 'dollar reservoir' function can alleviate some pressure, its price reaching $1 million is not impossible," the Hashkey Global Managing Director said in a note sent to The Block.

The largest digital asset by market cap's price increased 3% in the past 24 hours and was changing hands for $69,625 at 6:46 a.m. ET, according to The Block’s Price Page.