According to data from analytics firm Glassnode, miners are hoarding Bitcoin (BTC) and are refusing to sell. While long-term investors make a profit.
In fact, Glassnode reports that although it was characterized by strong miner sales in January. Outflows from miners were significantly reduced in February.
Who are the top Bitcoin sellers?
The report claims, that miners and long-term investors are the main sellers of Bitcoin during bull markets.
But, since the miners refuse to sell. The only conclusion would be, that long-term investors are responsible for a large percentage of the coins that are sold.
Certainly, according to Glassnode, the decline in miners’ outflows can be inferred as bullish. Since miners have already covered their operating costs or are storing coins in response to Tesla’s $ 1.5 billion investment in Bitcoin.
«This suggests that the miners have completed adequate sales to cover costs. Or it could also mean that they see Tesla’s vote of confidence as a fair reason to maintain strong control over their treasuries.».
In reality, as miners are currently accumulating Bitcoin (BTC), Glassnode concludes that most of the coins sold in the market are made by long-term investors.
The «Candle of Elon»
Equally important, the report indicates last week’s “Elon’s Candle.” With the largest daily candle in BTC history, which was recorded the day after the Tesla investment was announced.
Specifically, with a staggering 24-hour increase of $ 7,162 or 18.5%, on Monday, February 8.
Similarly, Glassnode analyzes the used production half-life of Bitcoin (ASOL). And, he concludes that long-term investors have used the Tesla news to make a profit.
To better understand, the Average Spent Output Lifespan (ASOL) of Bitcoin, is an indicator that measures the average age in days of all the exits of transactions spent.
Elon’s Candle has raised the average age of spent coins from 30 days to 58 days. As shown in ASOL ».
Similarly, Glassnode indicated that Coin Days Destroyed (CDD), which is a measure of economic activity that gives more weight to coins that have not been spent for a long time. It also shows that older coins are being redistributed.
By way of closing, Glassnode concludes that long-term investors have been reaping profits since October. When BTC went above $ 12,000 again.
But, despite longer-term investor profit-taking, Bitcoin has continued to post gains. At press time, Bitcoin is trading at $ 49,252.
Simply put, there is no question that 2021 continues to be a very exciting year for Bitcoin. What do you think? Let us know in the comment box.
I say goodbye with this phrase from Aristotle: «We are what we do, day by day. So excellence is not an act, but a habit».