Glassnode reports that for the first time in five months, there is a change in the miner position indicator and the change is positive. Thus, indicating that those responsible for making the coins have started holding. The miner position indicator measures 30-day changes in the availability of coins in miners’ addresses.
Miners Start The Accumulation Of Bitcoin
The data from the crypto analytics firm shows that the last two weeks have witnessed an increase of BTC in miner wallets from over 4.400 BTC to 1,800 million. Flex Yang opined that miners are holding in expectation of a price rally. Instead of selling the bitcoins they mint, bitcoin miners are now storing them. Fortunately, this has been predicted by the chart. There have been various upticks in the value of this metric between February and March of this year. Recently, BTC miners have increased their holdings by over 8,800 BTC (about $523,650,000 in fiat value).
Glassnode metric indicator indicating the change. Source: Twitter
This change in miners’ BTC position comes about four months where they have been intensely selling the coin to take profits. Miners’ reward for maintaining the bitcoin blockchain is BTC. Hence, if they choose to sell large volumes of the coin, it can have a significant effect on the price of the virtual currency. Cryptoquant’s miners’ position index which is similar to Glassnode’s metric indicator supports the same position as that of Glassnode.
If the value of this index exceeds two, it is an indication that the miners are taking sell positions.
BTC Rallying Back To The $58.5K Range
After attaining a new peak price of $61.8k around the middle of last month, the king coin has declined to about $52k but is gradually rallying back to its current price, which is a little above $58.5k. Even though BTC rose above the $60k price level on the second of this month and ethereum followed suit by exceeding the $2k mark, neither of them stayed for long. However, institutional investors never cease buying additional bitcoin. The latest purchases were made by MicroStrategy, one of the largest business software companies around the world. The company recently revealed that it purchased 262 coins at the rate of $57k per coin to give a total of about $16 million. Hence, the firm’s net BTC holdings have risen above 91,000.
The custom is for miners to liquidate holdings to make their expenses because they’re accustomed to operating on cash. However, mining-specific factors and expectations about the BTC price sometimes determine the degree to which miners sell BTC. Any breakout would indicate the larger uptrend might continue as is often the case in April.
Grayscale Loses Over $2b in 24 Hours
In other news, the recent crypto market rout has cost grayscale a whopping $2.5 billion in one day. The BTC’s worth of the world’s leading crypto asset management company was reduced from $33 billion and $31 billion.
There have been various reasons why the king coin continues to be the asset of choice for institutional investors.