Investment Analyst: "Miners are accumulating Bitcoin," indicating continued bullish sentiment for the future

Singapore-based investment advisory firm BRN analyst Valentin Fournier, interviewed by The Block, stated that besides accumulating mining rewards, mining companies seem to be directly buying Bitcoin from the market to build reserves. "They have triggered the Hash Ribbons indicator, which is a long-term bullish indicator, emphasizing the end of miner capitulation and the increase in processing power used to mine Bitcoin."

• Note: Hash Ribbons Indicator - The Hash Ribbons indicator is a tool used in Bitcoin trading. It consists of two simple moving averages (SMAs) of Bitcoin's hashrate: a 30-day SMA and a 60-day SMA. The crossing of the short-term SMA below the long-term SMA marks the beginning of a capitulation phase, while a crossing upwards indicates the end of the capitulation phase. This indicator assists traders in identifying potential favorable buying opportunities and predicts market bottoms based on mining activity.

Mining Firms Stop Selling Bitcoin and Continue to Accumulate

Mining company Marathon Digital announced in a post that it has purchased $100 million worth of Bitcoin. The company currently holds over 20,000 bitcoins on its balance sheet, valued at $1.28 billion. Among publicly traded companies in the U.S., Marathon Digital ranks second in terms of Bitcoin holdings, only behind MicroStrategy.

In the past year, companies like Marathon Digital used to regularly sell Bitcoin. However, Marathon Digital has now announced that they are entering a HODL mode, indicating they will cease selling.

According to CryptoQuant, the 7-day moving average of tokens flowing into miners' wallets has sharply increased. Over the past week, more than 1,900 bitcoins have flowed into miners' wallets, including bitcoins received as mining rewards and those recently purchased by miners on the market.

Signs Pointing to Bitcoin Approaching ATH?

Fournier stated, "The cooling PCE data released on Friday, Trump's speech on Bitcoin 2024, and the easing selling pressure from Mt. Gox and Grayscale ETF indicate that a strong rebound will push Bitcoin to new highs."

Ben El-Baz, Global Managing Director of HashKey, said, "The main catalyst driving Bitcoin's development now is Trump's transformation into a major advocate for cryptocurrencies." El-Baz added, "Trump believes that the future market value of Bitcoin has the potential to surpass that of gold, although this will require significant historical opportunities and a long period of time."

With the appearance of the "Super Central Bank" this week, the "Trump Effect" briefly pushed Bitcoin above the $70,000 mark.