Bitcoin is once again aiming for the $120,000 mark but is facing new challenges after the observed increase of miner deposits on Binance.
Miner Deposit Situation
According to CryptoQuant analyst Amr Taha, on July 25, miners sent over 18,000 BTC to Binance, worth over $2 billion. This event coincided with a $650 million USDC withdrawal, raising concerns about short-term liquidity despite an overall bullish market sentiment.
Changes in Miner Behavior
The increase in miner deposits indicates a shift from their previously cautious stance. Up until late June, miners were holding onto their reserves despite declining revenues and a slight 3.5% drop in Bitcoin’s hashrate. However, the July rally toward Bitcoin's all-time high seems to have triggered profit-taking. Taha suggested that rising operational costs and mining difficulty might also compel miners to liquidate some holdings.
> “While long-term sentiment remains bullish, this sharp inflow and capital movement may precede a period of consolidation or a local correction.” CITE_W_A
Overall Market Outlook
At the time of writing, Bitcoin was trading at $117,981, down 0.7% over the past 24 hours and 0.6% over the past week, although the asset has gained 8.8% in the last month. Bitcoin remains within a tight seven-day range of $115,184 to $119,568. Despite the sell-off, Bitcoin’s long-term fundamentals remain strong. Miner reserves have been increasing since March, with addresses holding 100 to 1,000 BTC accumulating 65,000 BTC, the highest level since November 2024. Traders are waiting to see if the flagship cryptocurrency can hold support above $115,000.
Overall, the current behavior of miners and potential changes in liquidity at Binance create uncertainties in the Bitcoin market. It is expected that maintaining support at the $115,000 level may pave the way for new attempts to break through the $120,000 mark.
