Bitcoin Price Surges Over $23,000 as Miners Reduce Sales

• Bitcoin prices surged past the USD$23,000 level, due to reduced sales of coins from miners.
• On-chain flows indicate that the amount of Bitcoin moved from Bitcoin mining addresses to wallets owned by cryptocurrency exchanges has decreased to multi-year lows.
• Large wallets (>$1M) are seen as majorly responsible for the buying pressure, creating a mini bull run.

The Bitcoin price has continued its bullish trend, reaching above the USD$23,000 level in recent weeks. This surge is largely due to reduced sales of coins from miners. Analysts from Bitfinex have flagged on-chain flows, which indicate that the amount of Bitcoin moved from Bitcoin mining addresses to wallets owned by cryptocurrency exchanges has decreased to multi-year lows. This decrease in sales from miners has created a low selling pressure and a favourable environment for a Bitcoin rally.

The analysts noted that large wallets (>$1M) have been responsible for the buying pressure that has created a mini bull run. This is supported by statistics which show that the number of wallets with $1,000 and $10,000 worth of Bitcoin have increased since the second week of January.

However, the analysts warned that the current surge might be corrected as investors look to recoup their profits. Nonetheless, they remain optimistic as they believe a long-term trend of accumulation could be forming.

In conclusion, the reduced sales of coins from miners, coupled with large wallets (>$1M) buying Bitcoin, has created a favourable environment for a mini bull run. Though the current surge might be corrected, the long-term trend of accumulation remains promising.