- Bitcoin ETF inflows and increased miner profitability suggest that the upward momentum in BTC prices may continue.
- Active addresses and increased open interest volume signal strong market activity, despite mixed derivatives data.
The price of Bitcoin (BTC) has seen a steady increase in recent weeks, sparking interest in the underlying factors driving this dynamic.
According to a CryptoQuant analyst, Amr Taha, there is a remarkable relationship between Bitcoin ETF net flows and miner profit/loss sustainability, which could influence Bitcoin price movements.
THE analysisshared on the CryptoQuant QuickTake platform, sheds light on how these two indicators interact and their potential impact on the market.
Bitcoin ETF, miners team up!
Taha’s analysis focuses on net capital flows into Bitcoin ETFs, highlighting that large positive net flows often occur near market highs, while negative net flows tend to coincide with market lows. walk.
This trend suggests that when capital flows into Bitcoin ETFs, it may lead to upward pressure on priceswhile capital outflows can lead to downward pressures.
Additionally, the Miner Profit/Loss Sustainability Chart helps determine whether Bitcoin miners are operating profitably based on the difference between Bitcoin prices and miner operating costs.
The chart identifies “overpaid” areas, when miners generate significant profits, and “underpaid” areas, when miners face losses.
Source: CryptoQuant
Taha’s analysis offers key insights into how BTC prices relate to miner profitability. As Bitcoin prices rise, miners tend to find themselves in more profitable positions, as seen in March, June, and October 2024.
During these periods, miners generated significant profits, with miner sustainability indicators exceeding 40.
However, when capital flows out of Bitcoin ETFs, miners’ revenues may decline due to selling pressure, pushing them into a less profitable or loss-making position.
A notable example of this occurred in May 2024, when Bitcoin prices fell sharply, leading to a miner sustainability level of -60, indicating that miners were extremely underpaid.
Source: CryptoQuant
It is worth noting that BTC ETFs have seen positive momentum so far, data from Sosovalue shows that BTC ETFs have seen continuous inflows above $200 million over the past seven days.
This is a 7-day streak of consecutive entries, which reflects increased demand for BTC-related financial products and could support further price increases.
At the same time, CryptoQuant data showed that miner inflows also increased, with a peak of 11,810 BTC on October 14 and another large inflow of 9,302 BTC on October 21.
The correlation between ETF inflows and miner reserves suggests that institutional interest and miner activity are contributing to the current Bitcoin price dynamics.
Active Address Growth and Market Data
Beyond indicators linked to ETFs and miners, data of Glassnode reported that activity on the Bitcoin network has accelerated in recent days.
Active Bitcoin addresses increased from 630,000 on October 16 to over 719,000 on October 22.
Source: Glassnode
This growth in active addresses signals increased user engagement and increased transactional activity on the BTC network, potentially contributing to the asset’s bullish momentum.
On the other hand, data from Coinglass has highlighted some mixed signals in the Bitcoin derivatives market.
Bitcoin’s open interest, which measures the total value of outstanding derivative contracts, declined 3.17% to a valuation of $39.36 billion at press time.
Source: Coinglass
Read Bitcoin (BTC) Price Forecast 2024-2025
However, Bitcoin’s open interest volume jumped 55.69%, reaching $68.28 billion.
The increase in open interest volume suggests that although fewer positions are held overall, position sizes are increasing, indicating a possible intensification of market activity in anticipation of significant price movements.
