Not Just Whales, Crypto Miners Can Also Affect Bitcoin Cs Prices

Bitcoin miners with mining rigs. (Photo; Doc. China Dialogue)

JAKARTA - In recent years, the role of miners or crypto miners has become increasingly prominent in the digital asset industry. Previously, big investors known as "whole" were considered the main drivers of the market, now miners are driving the crypto market.

Recent data from blockchain analytic firm Santiment shows that crypto miners also play an equally important role. By storing their mining-based assets, such as Bitcoin and Ethereum, instead of selling them, these miners were able to significantly affect market sentiment and price movements.

In early 2024, there was a decrease in the number of Bitcoin and Ethereum stored by miners, which raised concerns among investors. The decline is seen as a sign of selling pressure or a decrease in confidence in market prospects. However, recent data shows a change in trend.

The miners are starting to increase their number of assets again. This indicates the recovery of their confidence in the future of the crypto market. It can also be a sign of a possible price increase in the near future.

According to Santiment, mining behavior is often the initial indicator of market price movements. When miners choose to store their assets, this usually precedes price increases and can reduce short-term selling pressures.

In addition, this move also helps create positive sentiment among investors. However, James Carter, a leading blockchain analyst, warned that while the increase in asset ownership by miners is a positive sign, there are other factors that also affect the market, such as institutional interest, regulation, and overall market sentiment.

Crypto markets are currently being colored by high volatility which is influenced by regulatory uncertainty and global economic conditions. However, the recent surge in Bitcoin prices has sparked speculation of future market rallies.