Bitrabo Editorial
In an attempt to anticipate the future of the Bitcoin market, tracking the actions of miners is crucial due to their significant role in the network. Ki Young Ju, the founder of Cryptoquant, has been monitoring Bitcoin miner behavior, identifying a capitulation trend and making predictions based on this analysis.
Ongoing Miner Capitulation in Bitcoin Market
As disclosed by Ki Young Ju in a recent announcement on X (previously Twitter), Bitcoin miners are currently experiencing a phase of capitulation. This indicates that miners are succumbing to the prevailing bearish market sentiment, a trend that is expected to persist.
Ki Young Ju highlights a specific metric that could signify the end of this capitulation phase, which is the percentage of daily mined BTC in relation to the total yearly mine rate. Typically, the capitulation phase concludes when the daily mined BTC accounts for around 40% of the annual average.
However, the current ratio of daily to yearly average is notably higher, standing at 72% at the time of assessment. Consequently, the CEO predicts that the miner capitulation is unlikely to halt soon and advises investors to brace themselves for the long haul. Despite the short-term market outlook being labeled as “boring” for the upcoming 2-3 months, Ki Young Ju asserts a bullish perspective on Bitcoin’s long-term pricing trends, cautioning against excessive risk-taking during this phase.
Bitcoin’s Resilience Amidst Market Challenges
Amid concerns raised by the movement of the Mt. Gox 47,000 BTC, the stance of the Cryptoquant CEO remains bullish towards Bitcoin despite prevailing market obstacles. The CEO’s analysis suggests that the Mt. Gox transaction, a source of speculation, was primarily an internal transfer, potentially posing minimal impact on market prices even in the event of a sale.
Ki Young Ju suggests that if any transactions did occur, they were likely over-the-counter deals, exerting negligible influence on the broader market. Additionally, as these transactions bypassed traditional brokers or exchanges, their impact on market prices is deemed inconsequential. The absence of a significant surge in trading volume corroborates the view that Mt. Gox sales are not driving market fluctuations.