 ▲ Bitcoin (BTC) mining |
Bitcoin (BTC) miners are moving large volumes of holdings off exchanges, signaling a strong rebound driven by a potential supply squeeze.
According to cryptocurrency-focused media outlet CryptoPotato on February 18 (local time), Bitcoin miners have withdrawn approximately 36,000 BTC from their wallets over the past two weeks, drawing significant market attention. The amount is valued at around $2.5 billion and indicates that miners’ reserves have fallen to their lowest levels in years. While large-scale fund movements by miners are often interpreted as selling pressure, experts suggest that this shift is more likely a transfer to cold wallets for long-term storage or to over-the-counter (OTC) desks rather than an immediate sell-off.
On-chain analyst Ali Martinez explained that the outflow of miners’ holdings could act as a catalyst for price appreciation by reducing available market supply. Martinez emphasized that declines in miners’ Bitcoin reserves have historically preceded major bull runs. As more circulating supply becomes locked up, even a modest increase in demand could create conditions for a sharp price surge.
Technical indicators are also supporting the possibility of a trend reversal for Bitcoin. Key metrics such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are recovering from oversold territory and forming bullish divergences. Analysts predict that if Bitcoin breaks through key resistance levels, a powerful short squeeze—buying pressure triggered by the liquidation or covering of short positions—could propel prices rapidly toward previous all-time highs.
Ongoing accumulation by major institutional investors, including Strategy, is further strengthening downside support in the market. As miners lock up supply and institutions absorb available Bitcoin, the growing supply-demand imbalance is highlighting Bitcoin’s scarcity value. With fear across the broader cryptocurrency market easing and buying pressure returning, many analysts believe the market is nearing the end of its stabilization phase.
As long-term holders continue to show strong accumulation tendencies, the movement of miners’ funds suggests a shift in how liquidity is supplied to the market. With substantial volumes becoming unavailable for trading, the market structure is evolving to become more sensitive to smaller shocks. The strategic decisions of miners and institutions are expected to serve as a critical turning point in determining Bitcoin’s next price trajectory.
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