Bitcoin Smashes ATH: Inside the Hidden Moves of Miners and Leverage Traders

Bitcoin's latest rally isn't just retail FOMO—miners and degens are playing 4D chess while hodlers sleep.

The hash rate hustle

Miners are rotating rigs like Wall Street rotates CEOs—chasing cheap energy while quietly stacking sats ahead of the halving. No press releases, just pure unadulterated capital allocation (take notes, hedge funds).

Leverage lunacy

Perp traders are long like it's 2021 again, with open interest screaming 'irrational exuberance' in 10-foot flaming letters. CEXs happily collecting liquidations like a tax on stupidity.

The cynical kicker

Meanwhile, your financial advisor still thinks BTC is 'too volatile'—right before recommending a 2% bond yielding less than his management fees.

Bitcoin Miner Activity Rises Alongside Price Surge

One of CryptoQuant’s QuickTake contributors, Arab Chain, observed a marked increase in miner activity as Bitcoin crossed the $118,000 level. According to the analyst, this uptick in activity is tied to miner transfers to exchanges, marking the first such increase since May 23.

This trend suggests miners could be taking advantage of recent price gains to realize profits. As Arab Chain explained, “The continued activity of miners, coupled with Bitcoin’s price rising to new highs, clearly indicates that they are selling Bitcoin.”

Despite this renewed transfer volume, miner behavior has not yet reached the scale of over-the-counter (OTC) selling seen in previous months. Historically, large-scale selling by miners has introduced notable volatility into the market, particularly when sustained across a broader period.

The analyst also pointed out the economic leverage miners hold in decision-making, owing to their ability to manage operational costs and balance between holding and selling mined Bitcoin. Whether this increase in exchange flows will develop into heavier selling remains to be seen.

Derivatives Market Shows Renewed Leverage Exposure

In a separate analysis, CryptoQuant contributor Enigma Trader focused on derivatives market activity, highlighting a 24% surge in open interest from approximately $33 billion on July 1 to over $41 billion by July 11.

The timing of this increase coincides with Bitcoin’s breakout above $118,000, and reflects renewed leveraged interest following a reset late last month. This level of open interest suggests that traders are positioning more aggressively, potentially anticipating continued upside.

The analyst also noted a shift in funding rates from negative to their highest positive reading in a month, around 0.012% per eight hours. Positive funding indicates that long-positioned traders are paying to maintain their positions, a sign of bullish sentiment.

However, Enigma Trader cautioned that such positioning can become precarious if momentum slows. “This setup often fuels upside continuation if spot demand backs it, but also increases the risk of a long squeeze should momentum stall,” the analyst wrote.

Featured image created with DALL-E, Chart from TradingView