Key Points:
- U.S. ramps up Bitcoin mining efforts, offering long-term support.
- Bitcoin miners are selling less, but caution signals remain.
- Standard Chartered Predicts BTC at $120K by Q2 & $200K by Year-End.
U.S. Accelerates Bitcoin Mining Expansion
U.S. Commerce Secretary Howard Lutnick confirmed that Bitcoin mining will be a priority under the Trump administration. Plans include allowing miners to build data centers near gas fields and use waste gas for power, reducing reliance on the public electricity grid.
This government backing could enhance Bitcoin’s long-term network security, key fundamentals that may attract more institutional capital over time. However, the immediate price impact depends on broader miner behavior and macro conditions.
Miners Are Holding, But It’s a Double-Edged Sword
BTC Miner Sell Pressure
Bitcoin miner selling pressure which indicates how much BTC miners sell, is at its lowest since May 2024. Historically, such lows mostly led to sideways or declining prices, with rare exceptions like December 2012, 2013, 2016, and 2021 according to the analytical firm Alphractal.
Today, with Bitcoin prices lower than the all-time high of $109K and mining profits squeezed, miners are holding onto their coins. This could reduce new supply in the market, a factor traders should watch closely.
Hashrate Trends
Bitcoin’s hashrate hit a record high in April 2025 before cooling, mirroring patterns seen ahead of price peaks in 2021 and 2023. While no major top is confirmed yet, slowing hashrate growth could signal miner stress and potential volatility ahead.
Mining Difficulty Changes
Right now in 2025, difficulty is near record highs, which suggests miners believe in Bitcoin’s long-term value. But looking at the past, big drops in difficulty (like in 2021–2022) have often come before price pullbacks. So, if difficulty suddenly falls again, it might be an early warning sign that prices could face short-term pressure.
Standard Chartered: BTC to Hit $120K by Q2, $200K by Year-End
Despite near-term caution, bullish forces are building. Head of Digital Assets Research at Standard Chartered, Geoffrey Kendrick, reiterated his BTC price target of $120,000 by Q2 2025 and $200,000 by year-end.
Kendrick also points out that U.S. government bond yields (known as the “term premium”) are at their highest in 12 years. Normally, higher yields make bonds more attractive. But when yields rise because of inflation or economic instability, many investors prefer “safe havens” like BTC. These trends reflect a growing safe-haven demand for BTC amid broader macro uncertainty.
Outlook for BTC Traders and Investors
In the short term, BTC faces mixed signals, low miner selling pressure could either stabilize prices or hint at upcoming volatility if hashrate declines continue. However, government support and ETF inflows would create a favorable setup for medium- to long-term price growth.
With U.S. interest rate decisions and key economic data ahead, Bitcoin could face renewed volatility. Traders should monitor both mining metrics and macro developments closely before positioning for the next major move.
