Miners are an integral part of the Bitcoin network and since recent supply is provided by them, it is critical to track what miners are doing with their coins to predict where the market might be heading. With this in mind, Ki Adolescent Ju, founder of analytics platform Cryptoquant, has been tracking the behavior of Bitcoin miners, placing them in a capitulation trend and predicting what the market might do in the future as a result.

Bitcoin Miners Still Capitulate

In the analysis that was published on X (formerly Twitter), Ki Adolescent Ju revealed that Bitcoin miners are still in capitulation mode. This shows that these miners have surrendered to the current market trend, which is still bearish and may continue to do so for some time.

As the Cryptoquant CEO points out, there are situations that call for this capitulation to end, and one of them is the percentage of average daily mined BTC compared to the total amount of BTC mined per year. Typically, the capitulation ends when average daily mined BTC is 40% of the annual average.

However, the daily average compared to the yearly average is still much higher than needed, currently standing at 72% at the time of the report. Given this, the CEO does not believe that the miners’ capitulation will end anytime soon.

Instead, Ki Adolescent Ju advises investors to prepare for a long-term strategy. According to him, the price of Bitcoin is still bullish in the long term. However, not much is expected to happen in the next 2-3 months, calling the markets “boring” during this time. He advises investors to avoid taking on too much risk during this time.

BTC is still holding mighty

The crypto CEO’s stance on Bitcoin hasn’t changed much from bullish, despite the market headwinds. In another post, he analyzed the move by Mt. Gox to 47,000 BTC, which has raised concerns among investors. However, unlike the broader market, the Cryptoquant CEO doesn’t believe it will negatively impact the price.

According to him, Mt. Gox Transaction, what sparked the debate was simply an internal transfer. Moreover, even if it was a sell transaction, it would most likely be an over-the-counter transaction that would have no impact on the broader market.

Finally, these transactions were not actually conducted through brokers or exchanges, so supply had no impact on the market price. Furthermore, given that there was no significant augment in volume, this indicates that Mt. Gox sales are not driving the market.

Featured image created with Dall.E, chart from Tradingview.com