Bitcoin experienced a sharp pullback, falling below $117,000 after reaching $120,000. Market analysis indicates increased miner activity and record profit-taking.
Miners Cashing Out?
As the price approached new highs, the Miners’ Position Index (MPI)– which measures the ratio of miner outflows to their one-year moving average – spiked significantly. This indicates that some miners may have started to take profits as MPI readings above 2 suggest larger-than-usual Bitcoin outflows from miners to exchanges.
One of the Largest Profit-Taking Days
According to findings from Glassnode, Bitcoin investors collectively realized $3.5 billion in profit over the last 24 hours, marking one of the largest profit-taking days for BTC this year. Long-term holders accounted for approximately $1.96 billion of the total, while short-term holders captured around $1.54 billion.
Market Situation Analysis
Despite the outflows from miners, Binance recorded net inflows of nearly 6,000 BTC between July 12 and July 14. This influx, along with stable demand from other market participants, points to investors potentially preparing for large-scale transactions, avoiding outright panic selling.
Overall, Bitcoin’s stability may face pressure from short-term selling, but long-term investors continue to realize profits. Monitoring asset dynamics on exchanges and miner behavior will be crucial for predicting further price movements.
