What are the signs for the next bull run in Bitcoin and Ethereum

• Bitcoin and Ethereum mining wallets see a decrease in the supply held since the first half of 2024.
• The recent rebound in the combined supply of Bitcoin and Ethereum mining wallets is a sign of potential asset growth.
• BTC and ETH are hovering around key support levels on Friday.

Crypto mining is the process by which new Bitcoins and Ethereums come into circulation. Data from the crypto tracker shows that Bitcoin and Ethereum miners’ wallets have seen their asset holdings drop in the first half of the year.

Analysts believe that a recovery in their holdings could signal an optimal ride for the two assets.

This could signal a Bitcoin and Ethereum bull run

Analysts at crypto tracker Santiment said in a recent tweet on X that a recovery in BTC and ETH miners’ wallets could be considered a sign of a run. Bitcoin and Ethereum mining wallets have seen a steep decline in the supply held in the first half of 2024, as seen in the chart below.

Bitcoin mining wallets hold 2.14 million BTC, down 4% from the peak in April. Similarly, Ethereum mining wallets hold 1.18 million Ether tokens, down 4.5% from the 2024 peak. Analysts say that once the supply held by the mining wallet increases, it could be considered a sign of a bull runs in the two assets.

Bitcoin, Ethereum mining wallet supply

The phenomenon can be better explained when considering that Bitcoin and Ethereum miners usually sell their holdings to cover the costs of operations. Miners’ selling pressure adds to traders’ profit-taking and usually negatively impacts asset prices.

If miners reduce the supply sold or transferred to centralized exchanges and keep their BTC, ETH asset holdings, it could ease the selling pressure and signal an anticipation of gains in the two cryptocurrencies.

Therefore, analysts see an increase in the supply of mining wallets as a sign of an approaching bull run. At the time of writing, Bitcoin is trading at $57,940 and Ether at $2,349.

Traders watch for other signs such as Bitcoin’s dominance over altcoins and the performance of the top 50 altcoins ranked by market cap against Bitcoin as other signs for a bull run in BTC or alts.