Bitcoin Recovers from $100K Low as On-Chain Miner Activity Picks Up

Bitcoin (BTC) is making a comeback after falling to almost $100,000, in the wake of market volatility associated with public friction between Elon Musk and Donald Trump. At the last update, Bitcoin traded at $104,891, bouncing back from its 24-hour low and finding stability in the face of volatile markets.

While the larger crypto space is still processing the aftermath, recent on-chain metrics point to a strong increase in Bitcoin miner activity that may play a role in near-term price action.

Miner Inflows Increase, Suggesting Sell-Side Pressure

Bitcoin miners have significantly stepped up the amount of BTC flowing to exchanges, per CryptoQuant contributor CryptoOnchain. Between May 19 and May 28, miner-to-exchange inflows exceeded $1 billion per day—levels never seen in past market cycles.

These inflows are usually taken as a cue to sell, with a possible short-term volatility introduced by higher supply landing in the spot market.

"Big transfers from miners to exchanges typically indicate intent to unload BTC, and can create price stress in unclearly defined market cycles," CryptoOnchain reported.

Historically, miner outflow spikes have also led to subsequent periods of price softness—particularly in conditions of weak sentiment. Miner selling, though not necessarily bearish, is watched carefully in light of miners' role as key liquidity providers within the Bitcoin system.

Increases in Miner Transfers Mirror Market Sentiment

The increase in miner realized inflows indicates a change in sentiment related to profitability, operational strain, or price action anticipation. All these indicators give important insight to traders who seek to minimize risk.

"Keeping an eye on miner flows—particularly during times of historical extremes such as currently—is a must for risk management," stressed CryptoOnchain.

Hash Ribbon Buy Signal Points to Longer-Term Opportunity

While concerns in the short term, another significant metric is providing a bullish forecast. CryptoQuant analyst Darkfost says that the Hash Ribbons indicator has given a buy signal, and thus the miner capitulation phase could be turning around.

This indicator plots the 60-day moving average of the Bitcoin network hashrate against the 30-day moving average, and in the past has signaled perfect times for accumulation, except in exceptions such as the 2021 China mining ban.

"When miner stress dissipates and hashrates recover, the market usually experiences firmer support and sustained bull markets," Darkfost explained.

Although high miner selling pressure can suppress short-term BTC action, analysts indicate that such periods wash out excess supply, setting the stage for more resilient rallies.

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