Why They’re Accumulating Instead of Selling This Cycle

The post Why They’re Accumulating Instead of Selling This Cycle appeared on BitcoinEthereumNews.com.

CryptoQuant has flagged a major change in Bitcoin miners’ strategies, with implications that could reshape investor expectations for the current cycle. In previous instances, the Miners’ Position Index (MPI) has spiked in two key scenarios: before halvings, when miners strategically sell part of their reserves, and during the final stages of bull markets, when they offload aggressively into surging retail demand. This cycle, however, reveals a divergence. Miners Are Holding Like Never Before While limited pre-halving selling is evident, the hallmark late-stage capitulation has not materialized. The latest report shared by CryptoQuant said that factors such as US spot Bitcoin ETF approvals and the growing trend of sovereign entities adopting BTC as a reserve asset are encouraging miners to prioritize long-term accumulation over short-term liquidity. At the same time, Bitcoin’s mining difficulty has reached record highs, as its trajectory entered the so-called “Banana Zone” of steep increases. This points to expanding miner participation and increased competition. Transaction fees also provide a critical signal. In prior cycles, fee spikes in dollar terms typically coincided with overheated markets and preceded downturns. However, this time, even as fees surged, Bitcoin’s price has advanced in a measured stair-step fashion and has avoided the rapid peaks and subsequent crashes of earlier cycles. All in all, these on-chain signals indicate a structural change in miner behavior. Rather than rushing to sell into market strength, miners appear to be aligning with institutional investors and nation-states in adopting an accumulation-focused strategy. For investors, the combination of high difficulty, surge in fees, and muted MPI means that Bitcoin’s bullish momentum is being supported by a more durable foundation than in previous cycles, boosting a medium- to long-term positive outlook. Signs of Strength Alphractal founder and crypto analyst Joao Wedson highlighted BTC’s mixed performance trends in his latest tweet. He…