- Bitcoin’s Miners’ Position Index (MPI) has just hit its highest since January 2021, indicating miners are offloading.
- The increased miner selling could worsen Bitcoin’s sluggishness and lead to a faster price decline.
- However, past instances show that high MPI hasn’t always guaranteed an immediate price movement.
- Peter Schiff, a Bitcoin critic, predicts a “sharp decline” in BTC.
- Despite the factors suggesting a potential decline, Bitcoin’s future price remains unpredictable.
Bitcoin’s price action hasn’t been so bullish over the last few days, considering the reaction of its price to the ETF approvals.
According to a recent analysis piece from CryptoQuant, however, miners may be selling their Bitcoin holdings massively, leading to speculation about what the future of BTC holds.
Moreover, Peter Schiff, also thinks BTC is about to decline in price.
Let’s go over some of these details, as well as how these factors can actually affect the price of the flagship cryptocurrency.
The Miners’ Position Index, And What It Tells Us
The Miners’ Position Index (MPI) is one of the important metrics that analysts use to shed light on the actions and motivations of BTC miners.
The metric works by measuring the ratio between the amount of BTC that miners send out from their wallets to the 365-day moving average of that amount.
The MPI basically tracks how frequently BTC moves on and off the miners’ wallets, as a way to measure the amount of selling pressure that they are putting on the market.
The MPI just reached its greatest level since January 2021, when BTC was just starting out on the previous bull run.
This means that the miners are taking advantage of the recovery in Bitcoin’s price, and are now selling off all of their profits at a “faster than normal rate”.
This puts BTC in a sticky situation considering its current sluggishness, because its price is at risk of declining at a faster rate from here.
Bitcoin And The Ongoing Miner Exodus
The chart below shows the historical relationship between the MPI and Bitcoin’s price over the last few years:
The chart shows that the MPI always goes up when BTC declines, and vice versa.
CryptoQuant notes that the MPI spiked to over 4 in January 2021.
This shows that the miners were selling strongly. However, instead of a decline in BTC, the price rallied further by another two months, before any kind of decline.
This shows that the MPI may not always be a definitive indicator of Bitcoin’s decline.
Peter Schiff Says That Bitcoin Will Decline
Peter Schiff is one of the biggest “Bitcoin haters” out there, who is well known for being vocal when it comes to bashing BTC and crypto in general.
According to a recent tweet from Schiff, the SEC is expected to introduce newer and harsher regulations for BTC, especially now that the spot ETFs have just been approved.
Schiff says that these ETFs may be a Trojan horse of sorts, that has now backed Gary Gensler (the SEC Chair) into a corner.
These ETFs, according to Schiff, will increase the transaction costs of BTC transactions and therefore undermine its use case.
Overall, Schiff blatantly stated that he expects a “sharp drop” in Bitcoin price.
Schiff has also repeatedly bashed BTC in the past, especially when the spot ETFs had just been freshly approved.
Schiff took to Twitter to call the ETFs “eleven more ways for speculators to place their bets”.
In all, there are no certainties when it comes to predicting Bitcoin’s price.
The cryptocurrency currently trades at around $42,600 according to CoinMarketCap, and is trying to get back up above the $42,800 zone.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.