We checked the current data: today Bitcoin is trading at $43.6 thousand. On the daily chart of the cryptocurrency rate, you can see the formation of the bottom of the value of the asset, which it may well have already passed. Recall, the local minimum of the tenth of January was the level of $ 39,650. Below this mark, the main cryptocurrency has not yet fallen.

Bitcoin daily rate chart

Signs of a rebound are noticeable in the case of other cryptocurrencies as well. In particular, the top projects in terms of market capitalization have already started to show noticeable growth on a daily and some on a weekly basis.

Ranking of top cryptocurrencies by market capitalisation

Apparently, miners are also sensing signs of a rebound in the coin industry, and as such are in no hurry to get rid of their own assets.

What’s going on with bitcoins

The past few weeks have been noticeably disappointing for crypto traders: all this time the price of Bitcoin has been in a steep decline without any sign of a rebound. However, miners believe that BTC price will rebound after all. Otherwise, they would hardly be accumulating so many coins.

According to Cointelegraph, miners have accumulated about 5,000 more BTC in the last five days. At the same time, the accumulation has been accelerating since the beginning of the month, although miners have not actually been actively selling their coins since November, when Bitcoin set its all-time high at $69,000.

Dynamics of coin accumulation by miners

Note that miners took to accumulating bitcoins at the end of 2021 - that's when the main coin was priced relatively cheap amid the collapse. In January, though, the rate of hoarding became even more serious.

Another interesting fact was published by CryptoQuant analysts. They noticed a significant and steep decline in cryptocurrency reserves in miners’ accounts back in early 2021. Over the past 12 months, they have generally been accumulating bitcoins. The exception was May 2021, where the chart shows a noticeable drawdown in reserves due to China’s ban on cryptocurrency mining and a sharp collapse in the coin market in the backdrop.

Crypto miners’ reserves in 2021

As a reminder, the fewer bitcoins that are “freely available” – that is, those coins that are sold on exchanges – the lower the available supply of the cryptocurrency. Provided demand increases, which happens every bull cycle for BTC, Bitcoin’s price begins to react to the supply/demand ratio and rises sharply. Additional pressure on supply is also indicated by the growing number of lost or those coins that have been held in investors’ wallets for several years at a time. Most recently, that number rose to 7.27 million BTC.

Bitcoin supply shrinking

This trend is also true for the balance sheets of cryptocurrency exchanges. As noted by IntoTheBlock, investors withdrew 30.54 thousand bitcoins from trading platforms on Tuesday, January 11. This is the highest result in more than a month. Accordingly, investors are also counting on an increase in the value of the asset in the future, because otherwise they would keep coins on the exchange waiting for the right moment to sell. Right now, they prefer to store crypto in safer places.

Bitcoin withdrawal schedule from cryptocurrency exchanges


We believe that miners' reluctance to sell their bitcoins - as well as investors' active withdrawals of cryptocurrencies from centralised trading venues - will do the trick. It is important to remember that such actions significantly reduce buyer pressure on the asset. And when there are fewer buyers willing to sell, it creates the perfect environment for rates to rise. We want to believe that's what we'll be seeing soon. At the very least, with inflation on the rise, investors' desire to move part of their portfolios into digital assets, which are independent of government action, would seem logical.