Bitcoin (BTC) strengthens after CPI data, what impact will it have on miners?

Updated

July 18, 2025

Gambar Bitcoin (BTC) strengthens after CPI data, what impact will it have on miners?

Jakarta, Pintu News – Bitcoin seems to be recovering after suffering a dip due to the latest US Consumer Price Index (CPI) update. The cryptocurrency briefly slipped to a low near $116,000, but has now bounced back, reaching $119,248 earlier today and trading at $119,187 currently, just 3.1% below its previous record high of $123,000.

Bitcoin Miners’ Behavior Indicates Short-Term Pressure

An analyst from CryptoQuant, Avocado Onchain, recently highlighted that the Miners Position Index (MPI) has jumped to 2.7. This index measures the amount of Bitcoin (BTC) moved by miners to exchanges compared to a one-year historical average. A high MPI reading usually indicates increased selling intentions, as miners move assets onto trading platforms.

Avocado noted that the current reading may indicate mild selling pressure, which could lead to a short-term correction or sideways trading pattern. However, the analyst also emphasized that the current MPI value is still far from the high levels usually seen at the peak of market cycles. This activity may be part of a recurring intra-cycle trend where a short correction is followed by further upward movement.

Also Read: Bitcoin Price Has Skyrocketed, Here Are 5 Tips to Choose a Safe and Reliable Crypto Exchange!

Network Flow Supports Data Trends

In a separate analysis, another CryptoQuant contributor, Arab Chain, examined the implications of increased miner activity. According to its findings, network data shows a significant increase in miner-related movements, a level last seen in November 2024. Arab Chain explained that although miner activity on the blockchain is increasing, this does not automatically confirm a sale unless Bitcoin (BTC) is transferred to an exchange.

To further validate the view, Arab Chain analyzed the platform’s flow data. They observed a correlation between BTC transfers to exchanges and Bitcoin’s (BTC) recent rise above $116,000. This movement may indicate that miners find the current price favorable to sell, perhaps to cover operational costs or secure liquidity.

Further Implications of Miners’ Activities

The data also suggests that miners may be anticipating a potential correction, which could prompt more transfers and further market fluctuations. Arab Chain concluded that the extent of any correction will largely depend on whether this wave of miner activity continues. While this activity might affect short-term volatility, it doesn’t necessarily affect the long-term trajectory of Bitcoin (BTC).

Conclusion

Despite potential selling pressure from miners, the long-term outlook for Bitcoin (BTC) remains unchanged. Investors and market watchers should stay alert to these indicators, as they can provide important insights into current market dynamics.

Also Read: Bitcoin Price Breaks ATH, 5 Smart Investment Strategies to Deal with Market Volatility

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.