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Bitcoin Miner Strength Signals Sustained Bull Run Despite Short-Term Volatility

Bitcoin Miner Strength Signals Sustained Bull Run Despite Short-Term Volatility

Published:
2025-10-28 16:00:14
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As Bitcoin consolidates below the $125,000 level following a recent correction that tested the $120,000 support zone, the cryptocurrency market is witnessing a fascinating divergence between short-term price action and fundamental strength. The recent pullback from higher levels has naturally raised concerns among traders about potential deeper retracements, yet underlying on-chain metrics are painting a remarkably optimistic picture for Bitcoin's medium to long-term prospects. Most notably, the Bitcoin Miner Health Index has surged to 59%, indicating that miners—traditionally a source of consistent selling pressure—are demonstrating unprecedented financial resilience and holding patterns. This miner strength represents a significant shift from historical patterns where miner capitulation often preceded major market downturns. Instead, current data suggests miners are strategically accumulating rather than liquidating their holdings, reflecting strong conviction in Bitcoin's continued appreciation. The $120,000 support level has held firm through the recent test, demonstrating robust buying interest at these elevated price levels. Market analysts observe that while a deeper retracement cannot be entirely ruled out in the short term, the fundamental backdrop supported by miner behavior and on-chain metrics strongly suggests the broader uptrend remains intact. This combination of technical support holding at psychologically important levels and fundamental strength from the mining sector creates a compelling case for Bitcoin's next upward leg, potentially targeting new all-time highs beyond current consolidation ranges as market structure continues to strengthen.

Bitcoin Miner Health Index Hits 59%: A Bullish Signal for the Market

Bitcoin is consolidating below $125,000 after a sharp correction tested the $120,000 support level. Despite the pullback, bullish resilience suggests the broader uptrend remains intact. Analysts caution that a deeper retracement could materialize before the next leg up, but onchain metrics paint a more optimistic picture.

Miners—historically a source of selling pressure—are holding firm, with the Miner Financial Health Index reaching 59%. This reluctance to offload BTC signals conviction in the asset's long-term trajectory. Hashrate stability and rising fee shares further underscore miner confidence in the sustainability of current prices.

The market now watches for a decisive break above $125,000 to confirm continuation. With miner balance sheets strengthening and spot demand absorbing volatility, the stage appears set for Bitcoin's next major move.

Black Swan Event Triggers Historic Crypto Liquidation Amid Political Shockwaves

The cryptocurrency market suffered its largest liquidation event in history following former U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports. Bitcoin plummeted from a record high above $125,000 to below $110,000 within 24 hours, erasing $190 billion in leveraged positions and liquidating 1.6 million traders.

Perpetual futures contracts—the crypto market's preferred high-risk instrument—amplified the carnage. Traders employing 20x to 100x leverage saw positions evaporate as automated liquidations cascaded across exchanges. The collapse exposed the market's dangerous reliance on leverage, with most losses concentrated in long positions betting on perpetual price appreciation.

This black swan event revealed the inherent fragility of crypto's derivatives ecosystem. What began as a political headline became a stress test that the market failed catastrophically—not because of tariffs, but due to the dry tinder of overleveraged speculation.

Michael Saylor Bitcoin Tweet Ignites Debate on Tariffs and Crypto

MicroStrategy's Michael Saylor sparked a global discussion with his succinct tweet: "No tariffs on Bitcoin." The October 10, 2025 post came amid heightened regulatory scrutiny of cryptocurrency markets worldwide. Saylor's intervention reframes the digital asset debate in terms of trade policy, challenging conventional approaches to crypto regulation.

The Bitcoin maximalist's statement arrives as governments increasingly view cryptocurrencies through the lens of monetary sovereignty. Market observers note growing divergence in how jurisdictions classify digital assets—as commodities, securities, or in this case, potential imports. Saylor's position implies Bitcoin should occupy a unique category exempt from traditional trade barriers.

Satoshi-Era Bitcoin Whale's $1.1B Short Precedes Market Crash Amid Tariff News

A mysterious Bitcoin whale from the Satoshi era capitalized on a $1.1 billion short position just before the crypto market plunged, sparking speculation about insider knowledge. The sell-off coincided with President Trump's announcement of 100% tariffs on Chinese goods, triggering $5.5 billion in liquidations and briefly crashing BTC to $101,500.

On-chain analyst Maartunn traced the whale's perfectly timed trades, noting a $160 million profit from the downturn. The entity's history of prescient market moves—including accumulating shorts as BTC slid toward $117,000—has fueled theories about privileged information. Blockchain data reveals this actor consistently anticipates volatility before public catalysts.

Cryptocurrency Market Faces Major Crash, Bitcoin Falls To $112k

Bitcoin plunged 7.7% in 24 hours amid a broader crypto market selloff, erasing its recent all-time high of $126,080. The downturn marks a departure from October's typical bullish trends, with $19.31 billion in liquidations recorded.

Geopolitical tensions between the US and China appear to be driving the correction. New 100% tariffs on Chinese exports and rare earth mineral restrictions have rattled risk assets. Market participants show reluctance to deploy capital during the volatility.

BlackRock's Rick Rieder Advocates for Gold and Bitcoin in Portfolio Strategy Amid Fed Speculation

Rick Rieder, BlackRock's global fixed income chief, emerges as a potential successor to Jerome Powell as Federal Reserve Chair when Powell's term concludes in 2026. Rieder's macroeconomic acumen and alignment with aggressive rate-cutting policies—advocating for a 50 basis point reduction—have drawn WHITE House favor, mirroring President Trump's public pressure on Powell.

In a CNBC interview, Rieder outlined a dual-asset strategy for investors: gold and bitcoin (BTC). He positions gold as a critical hedge against the dollar's 9% annual decline, recommending a 3%-5% portfolio allocation. Bitcoin, despite its volatility, joins gold in what Rieder terms an "ideal" portfolio mix. Gold has surged 52% this year, fueled by central bank demand and currency instability.

The prospect of Rieder's Fed leadership and his dovish stance could accelerate equity rallies and institutional crypto adoption. His endorsement underscores a growing institutional narrative: hard assets and digital currencies as pillars of modern risk management.

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