The on-chain analysis company Santiment has highlighted an indicator that may signal the onset of a new Bitcoin bull market.

Miner Supply Could Indicate Upcoming Bull Market for Bitcoin

In a recent update on X, Santiment examined the “Supply held by Miners” metric. This metric tracks the total Bitcoin supply held in the wallets of miners.

When the metric increases, it indicates that miners are accumulating more tokens. Since miners routinely gain coins through block rewards, these inflows aren’t unusual.

However, significant and sustained net inflows could indicate that miners are holding onto their assets, which can be a positive signal for prices. In contrast, a decline in this metric suggests that miners are offloading coins, possibly to sell.

Below is a chart illustrating the trend of the Bitcoin Supply held by Miners over recent months:

The graph shows that since around April, the Supply held by Miners has been decreasing, indicating a consistent selling trend among this group.

While miners often sell tokens to cover operational expenses, such as electricity, their recent selling has been persistent and may have contributed to Bitcoin’s price stagnation during this time.

The cause of this increased selling activity could be attributed to the recent Halving event, which significantly reduced Bitcoin block rewards, thereby affecting miners’ revenues.

Since the Halving in April, miners have faced financial pressure, and Bitcoin’s ongoing bearish trend has exacerbated their need to sell.

Santiment emphasizes that any turn in the Supply held by Miners should be monitored closely, as it could indicate that miners are once again ready to accumulate, serving as a strong indicator that a new bull market may be on the horizon.

Current Bitcoin Price

Currently, Bitcoin is priced at approximately $58,200, reflecting a 6% increase over the past week.