Bitcoin's recent price surge to $103,000 has led to a notable change in miner behavior: instead of panic selling as seen previously, they have shifted to accumulation mode. Meanwhile, mining costs are rising sharply, and retail investors are starting to return to the market – all these factors could set the stage for sustained upward momentum in the coming weeks.
According to the on-chain analysis company Glassnode, Bitcoin miners have stopped dumping and are quietly accumulating again. Data from the company shows that the amount of BTC held by miners has increased for the first time since the end of 2023.
As of April 12, miners' wallets contained approximately 1,794,622 BTC. By May 13, this number had increased to 1,797,330 BTC – an increase of 2,708 BTC, equivalent to about 0.15%. The accumulation occurred right as Bitcoin formed a temporary bottom around $75,000 in April.
Miners face 'sky-high' production costs
The return of miners to holding also occurs amid skyrocketing Bitcoin mining costs. According to new estimates published by the technology information site PCGamer, the cost to produce one BTC has now exceeded $82,000 for publicly listed mining companies – nearly double from the previous quarter.
For smaller mining units, the average cost can even reach around $137,000/BTC – a price level that makes coin mining inefficient, even when BTC is trading around $103,000 as of mid-May.
In Germany – one of the least favorable regions for mining due to high electricity prices and strict regulations – the cost of mining 1 BTC is estimated to reach $200,000. This discrepancy forces miners to reassess their coin-selling strategies. Many companies now choose to hold onto mined BTC instead of selling at a loss.
Retail investors are 'back in the race'
In another development, demand from retail investors – those holding BTC worth from $0 to $10,000 – has increased in recent weeks, according to on-chain indicators tracking this group's behavior.
The BTC Retail Investor Demand 30-Day Change index (the change in Bitcoin buying demand from retail investors over the past 30 days) from CryptoQuant has turned positive since April 28. From then until May 13, the amount of BTC purchased by retail investors has increased by 3.4%.
Analysts believe this increase comes from many retail investors returning to the market after Bitcoin surpassed the $100,000 mark in early May. Previously, BTC had hit multi-month lows in April, leading many to think the previous uptrend had ended.
According to expert Carmelo Alemán, retail investors often enter late compared to trends, but their participation can 'amplify bullish sentiment' and create additional buying pressure. He also believes that the activity of this group indicates that positive sentiment is spreading beyond institutional investors and whales.
Bitcoin is currently approaching a significant resistance area around $105,800. With the current price at $102,927, the leading cryptocurrency is moving along an upward trend following a positive adjustment from April's lows.
BTC has been rejected multiple times at this resistance area, but the bulls seem to be regaining control. If this level is successfully broken, Bitcoin could pave the way to retest the historic peak of $109,935.
