Bitcoin Today 10/29/2024: BTC passes the test and returns to US$70,000
The giant finally woke up. After six months of waiting, Bitcoin (BTC) has finally surpassed the US$70,000 barrier again, according to CoinGecko. The appreciation of BTC reached 3.5% this Tuesday morning (29), which made the price reach US$71,100.
Furthermore, the global market value of cryptocurrencies recorded an increase of 4.5%, reaching US$2.41 trillion in total. The total trading volume rose more than 100% and moved US$ 97.61 billion in the last 24 hours.
With Tuesday's appreciation, Bitcoin increased its monthly gains to 12.36%, while the seven-day appreciation reached 6.3%. In the Top 10, Dogecoin (DOGE) once again led the Top 10 highs with strong gains of 13.1%, while Ethereum (ETH) appreciated 3.3% and reached the level of US$2,600.
However, an analyst at CryptoQuant projects that the current metric in the Miner Position Index (MPI) will significantly help BTC record new highs. This analysis projects that the exponential appreciation of BTC should occur by mid-2025.
Bitcoin miners will play an important role
Bitcoin miners verify new transactions and add them to the network, receiving new BTC in return. Entities interested in operating a mining node must configure the equipment necessary for the job, which today is much more specialized than in the past.
Historically, Bitcoin miners tend to sell portions of their inventory to cover operating costs before the halving takes place. The event is the main one for the Bitcoin network, as it halves the number of BTC produced in each block. The most recent halving took place on April 20 and saw the block reward drop from 6.25 BTC to 3.125 BTC.
The CryptoQuant analyst explained that miners sell after the halving, but accumulate and hold BTC after the price stabilizes after it occurs. In this regard, recent reports show that prominent miners like Marathon Digital are accumulating as much BTC as possible.
The current MPI metric indicates that miners are still holding on to their coins.
“Historically, when the MPI has recovered from a low, the price of Bitcoin has tended to experience significant increases. Therefore, the current situation can also be interpreted as a prelude to a rise in the price of Bitcoin,” said the analyst.
Offsetting the Returns
Referencing another on-chain indicator, the analyst explained that block rewards are also increasing due to an increase in on-chain transactions. The rise in rates is offsetting, albeit in a small part, the return losses from the cut in the issuance of new BTC.
Ideally, an uptrend in on-chain trading is often accompanied by an increase in the price of the network's underlying asset. And this has happened in recent days, as indicated by the appreciation of the cryptocurrency this week, which reached its highest level since before the halving.