Bitcoin (BTC) Miners Show No Signs of Significant Surrender Despite Price Dropping 32% from 2024's Peak

Amid continued macroeconomic uncertainty, Bitcoin (BTC) miners have shown no signs of significant surrender, even as the crypto giant faces a 32% decline from its 2024 high, according to a recent report by Bitfinex Alpha.

The stable on-chain data showcases that miners still hold strong confidence in the market’s future growth potential.

Miners’ Reserve Stability

Recent data reveals that Bitcoin (BTC) miners’ reserves have remained stable, reaching 1,808,674 BTC by May 5, showing little change since December 2024. This signals a cautious holding strategy, with miners largely refraining from large-scale selling despite facing operational costs like electricity, maintenance, and salaries.

Analysts from Bitfinex Alpha highlight that miners’ resilience in not selling their assets—even after a 32% price recovery from the April low—suggests their optimism that the bull cycle is not over yet. This indicates the current cycle still has scope for growth despite macro volatility and uncertainty.

Puell Multiple and Miner Profitability

The Puell Multiple, a key indicator of miners’ profitability, is currently well below the threshold that historically indicates increased sales activity. Values above 2 usually signal an increase in sellers, but the current level suggests a low likelihood of miners engaging in large-scale selling.

This analysis aligns with the broader narrative of Bitcoin (BTC) miners having no urgent need to sell their assets. With a low Puell Multiple—suggesting they are not engaging in excessive selling—and facing an urgent need for liquidity, it’s likely they prefer to observe and await more favorable market conditions before offloading their coins.

Future Prospects of Bitcoin

Stable reserves and minimal selling pressure from miners attest to their belief in the potential for Bitcoin’s (BTC) value to rise further. While the market may be susceptible to short-term price fluctuations, the existing structural signals suggest there are still growth opportunities in the current cycle.

As miners are continuing to hold their positions, it suggests they anticipate further price increases, which aligns with the optimism derived from on-chain data. This collective factor presents a more positive outlook towards the future of Bitcoin (BTC).