Bitcoin (BTC) has been struggling to break above $70,000 for over four months now. Even the much-anticipated “Uptober” failed to push it above that level for quite some time, until yesterday.

However, market analysts predict that the current Miner Position Index (MPI) will significantly help Bitcoin’s price to soar to incredible heights between now and the end of this year.

How Miners Drive Further Price Growth

Bitcoin miners verify new transactions, add them to the network, and create new bitcoins by solving cryptographic problems. Organizations interested in operating a mining node must set up the hardware necessary to run the operation.

Historically, Bitcoin miners tend to sell some of their BTC holdings to cover operating costs before the Bitcoin halving occurs. This four-year event cuts the amount of BTC produced in each block in half. The latest halving on April 20 saw the block reward drop from 6.25 BTC to 3.125 BTC.

A CryptoQuant analyst explained that miners often accumulate and hold BTC instead of selling it when the price stalls after the halving event. Recent reports show that well-known 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 MPI bounces off the low, the price of Bitcoin tends to rise significantly. Therefore, the current situation can also be interpreted as a prelude to a rise in the price of Bitcoin.”

Referring to another on-chain indicator, the analysts explain that block rewards are also rising due to a surge in on-chain transactions. Ideally, an uptrend in on-chain transactions is often accompanied by a surge in the price of the network’s underlying asset.

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