A newly published report suggests that while long-term bitcoin holders are starting to take profits as the price of the flagship cryptocurrency keeps rising past new milestones, bitcoin miners are now accumulating coins.
On-chain analytics firm Glassnode has revealed that miner outflows have dried up so far this month, at a time in which long-term investors have started to dump a portion of their holdings. Usually, miners and long-term investors are the main sellers in BTC bull markets, it adds.
Per Glassnode, as Cointelegraph reports, declining miner outflows can be seen as bullish, as miners have either already sold enough to cover operating costs and can, as such, reduce selling pressure on the market, or are now accumulating in response to Tesla’s $1.5 billion investment in the cryptocurrency.
The report reads:
- This suggests that miners have either completed adequate sales to cover costs, or could also mean they see Tesla’s vote of confidence as fair reason to keep a strong grip on their treasuries.
As miners are currently accumulating coins, Glassnode’s report concludes that the majority of selling pressure is now coming from long-term investors offloading their coins. It looks at Bitcoin’s Average Spent Output Lifespan (ASOL), which measures the average age of all spent transaction outputs in days, to show investors capitalized on the bull run that followed Tesla’s announcement to make a profit.
Glassnode also pointed to the Coin Days Destroyed (CDD) metric, which measures economic activity giving more weight to coins that have not been spent for a long time, and shows that older coins are being redistributed. It concludes that long-term investors have been taking profits since October, when PayPal announced it would let users buy, sell, and hold crypto.
It’s worth noting bitcoin miners’ revenues have recently been going up, as BTC’s price moved from around $11,000 in October to a new $50,000 all-time high before enduring a small correction.
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