Bitcoin (BTC) Faces Mounting Pressure as Miners Quietly Accumulate $900M in BTC, Offering Key Support

Bitcoin (BTC) faces mounting pressure as inflation signals and economic uncertainty push prices lower. However, miners have quietly accumulated $900M in BTC

Bitcoin (BTC) faced mounting pressure on Sunday as inflation signals and economic uncertainty pushed the cryptocurrency lower. However, miners have been quietly accumulating BTC, reaching $900M in recent times.

Bitcoin Tested New Lows at $82K as Inflation Signals Intensify

Bitcoin price slid to $82,220 by 09:00 UTC, testing new lows as the cryptocurrency slid further from last week’s peak of $95,000.

This downturn follows an 11.4% price pullback from recent highs, fueled by renewed concerns over inflation and rising unemployment.

The latest Non-Farm Payrolls (NFP) figures from the U.S. are expected on Friday, potentially bringing fresh employment trends.

Despite Trump’s recent announcement of a Bitcoin strategic reserve and a White House summit on the crypto market, no significant developments have emerged yet.

Trump's policy to include Bitcoin in federal reserves sparked an initial rally. However, enthusiasm waned as inflation fears took hold, rendering investors cautious.

Investors are considering the long-term benefits of Bitcoin's inclusion in federal reserves versus the immediate economic headwinds.

Moreover, the White House summit on the crypto market failed to yield immediate clarity, with key policy-makers still split on Bitcoin’s role in financial markets.

This stasis has slowed down institutional players from making any large-scale purchases, which could explain the 11.4% Bitcoin price pullback observed over the weekend.

Why Is Bitcoin Price Going Down?

As U.S. consumers prepare for the second week of tariff-induced price hikes, several industries are adjusting their supply chains and production cycles for costlier operations.

Key consumer goods are also undergoing price reviews, further intensifying inflation concerns.

Retail investors, typically more sensitive to rising costs, will likely be shifting funds to cover increased expenses, suggesting capital will flow out of risk assets like Bitcoin.

Furthermore, institutional investors are pivoting toward bonds and fixed-income securities in anticipation of upcoming rate hikes.

This has seen 10-year bond yield soar in key markets. The 10-year Treasury yield surged to 4.3%, reaching its highest level since November 2023.

According to TradingEconomics data, similar trends are unfolding in Europe, with Germany’s 10-year Bund yield climbing to 2.45% by 07:30 CET, showcasing strong capital outflows into the eurozone.

Finally, in Japan, the 10-year government bond yield hit 0.88%, marking its highest point since 2013.

These escalating yields are rendering bonds more lucrative for institutional investors, diverting capital from risk assets like Bitcoin and equities.

Miners Accumulated BTC Amid Policy Uncertainty and Unfavorable Prices

Despite the prevailing bearish sentiment and unfavorable market conditions for selling, bitcoin miners have adopted a contrarian approach, accumulating BTC rather than selling into the market downturn.

The latest CryptoQuant data on March 9 shows that miner reserves reached 1,809,480 BTC. This indicates an increase of over 1,000 BTC in the two weeks since Trump announced 25% tariffs on Canada and Mexico.

At current bitcoin prices, this absorption amounts to approximately $820 million.

Miners’ decision to hold rather than sell suggests confidence in a long-term bullish outlook, possibly linked to expectations surrounding the U.S. Treasury’s potential bitcoin purchases.

By limiting fresh supply from trickling into the market, bitcoin miners are effectively providing a buffer against further downside risks.

If this trend of bitcoin miners accumulating continues and market conditions stabilize, it could help prevent BTC price from sinking deeper.