BTC Miners Net Position Turned Positive, Is A New Rally Overdue?

BTC miners net position turned positive after weeks of gut-wrenching volatility with the start of April being kind to Bitcoin as we can see in our latest bitcoin news today.

After the record-breaking $6.4 billion options expiry with the BTC price action being less volatile in the past few days. According to the BTC volatility Index with the 30-day volatility dropped from a high of 5.34% to 3.42% at the time of press. The majority of the price level for BTC is consolidating under the all-time high of $61,800 which is a welcome sign after the prices dropped to $51,000 a week before. As ETH rallied to a new ATH of $2144 with the investors wondering whether BTC will push higher it’s previous high. As per the on-chain metrics, it could be due to a strong move up.

Since the BTC miner net position change became positive with the miners continued to accumulate the digital token. The miner net position change represents a transaction flow of mining pools once the metric became positive with the total number of BTC being sold by the miners being less than the amount held. This is a bullish indicator as the accumulation suggested that the miners are willing to speculate with the price of BTC that will increase in the near future. At the start of April, the net position change hit an aggregate of 4514 coins a day and continued to hold up. The last time the miners started accumulating was back in 2020 which was when Bitcoin doubled its value to $40K.

The BTC miners net position turned positive as the institutional demand and narrative are growing with the coin primed to soar to new highs. JP Morgan updated its long-term outlook on the cryptocurrency to $130,000 citing a growing number of institutional investors and dropping volatility. Gold continued to underperforming BTC which led to the precious metal suffering $20 billion while BTC investments increased by $7 billion.

As recently reported, BTC dumped $3500 after another failed attempt to overcome the $60K level while most altcoins followed south with the entire market cap losing more than $60 billion in one day.  BTC was flirting with the $60K region for a few consecutive days but every attempt to reconquer was met with a strong rejection. The situation repeated in the past 24 hours as BTC was closing down to its rounded level-nemesis with the bears taking control and pushing the coin south.