As the wider crypto market grapples with the aftermath, fresh data suggests that an additional factor, namely miner activity, is beginning to influence the near-term outlook.

There has been a significant surge in miner inflows, which could pressure Bitcoin’s price action, according to on-chain analytics by CryptoQuant contributor, CryptoOnchain. Between May 19th and May 28th, the inflow of BTC from miners to exchanges exceeded $1 billion per day, a level unheard of in prior market cycles. These inflows often indicate miners’ intent to sell, altering short-term supply dynamics and potentially inserting more volatility into Bitcoin’s spot market performance.

The current increase in inflows from miners to exchanges suggests an increase in sell-side pressure. Miners, as key liquidity providers in the Bitcoin ecosystem, typically transfer large amounts to exchanges when they intend to sell off BTC. Historically, spikes in miner outflows have been followed by periods of downward price pressure, especially under fragile market conditions.

However, amidst the rising sell pressure, another indicator, Bitcoin’s Hash Ribbons, is signaling a potential opportunity. This indicator, which compares 30-day and 60-day moving averages of network hashrate, has recently flashed a new buy signal. It indicates that miners have come out of a capitulation phase and are now stabilizing or recovering, usually suggesting favorable long-term entry points.

While the immediate effects of mining stress could contribute to price weakness, these periods often lay the groundwork for more prolonged rallies. Once miner capitulation resolves, it can eliminate excess supply from the market and create stronger support levels.

The post Bitcoin Bounces Back from $100K Tumble Amidst Rising Crypto Mining Activities appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Over the past two weeks, the crypto market has seen tumultuous conditions amidst an uncertain political environment. “The abrupt price fluctuation signifies this turbulence,” observes Glassnode in a research note issued in March.

Bitcoin’s realized volatility, a metric for daily price fluctuations, has recorded some of the highest values in this cycle, exceeding 80% on one- and two-week timeframes, as per Glassnode. The average true range (ATR) of the digital currency, a different volatility indicator, has reached a cycle peak of over 4,900, a significant increase from around 3,000 in late February, as indicated by TradingView data.

As of March 5, Bitcoin has witnessed almost a 30% slump from its December highs of approximately $109,000, the highest spot price ever recorded for the cryptocurrency. Altcoins, including Ether and Solana, have also suffered, dropping more than 50% from their highs, reports Glassnode.

On March 4, President Trump introduced a 25% tariff against major trade partners, Canada and Mexico. This bearish news came as a surprise for traders who were optimistic following Trump’s announcement on March 2 about the creation of a US crypto reserve featuring tokens like BTC, ETH, XRP, and Cardano.

Consequently, Bitcoin’s price fell to about $82,000 from a high of around $93,000 on March 3, according to Google Finance data. Other altcoins like ETH and SOL experienced even steeper drops, falling approximately 12% and 20% respectively.

The recent sell-off indicates that macroeconomic factors could potentially overshadow positive developments in the crypto industry, such as the dismissal of several lawsuits against crypto firms by the US Securities and Exchange Commission in February.

On March 4, cryptocurrency derivatives traders faced more than $1 billion in liquidations due to the extremely volatile spot prices.

The post Bitcoin’s Upheaval Skyrockets Amid US Crypto Reserve Uncertainties and Tariff Concerns appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.