After investing $5.5 million in Vakt (a blockchain-related oil trading firm) last year, crypto enthusiasts developed more interest in Saudi Arabia’s biggest oil exporter (Saudi Aramco). But there were rumors that the oil company was planning to start mining Bitcoin.
But the company has clarified the situation by releasing an official statement where it states that “this release is to clear the air that Aramco isn’t embarking on any Bitcoin mining operation. Any news otherwise is false.” Authorities in China and many other countries have continued their clampdown on crypto-related activities.
But the Chinese clampdown has had the most astounding effect because china has the highest concentration of Bitcoin miners, and the clampdown has seen these miners seek refuge in crypto-friendly regions. Saudi Aramco’s Vakt investment isn’t their first foray into the crypto world. They’ve previously invested $6.5 million in Data Gumbo corporation to create a commercial blockchain system.
A Rise In Market Manipulation
Conversely, top middle-eastern countries like Saudi Arabia and the United Arab Emirates are embracing the cryptocurrency trend. Recently, Bahrain’s apex bank granted a local crypto exchange the license to operate legally in the country.
Also, the UAE central bank recently released a 3-year strategy where it released a schedule to launch its central bank digital currency. Part of the plan involves executing a digital identity system to ease access to financial operations and strengthen financial inclusion.
There have been several attempts to manipulate the market recently, with more top firms publicly denying any plan to venture into cryptocurrency adoption. Before this Saudi Aramco denial, Amazon was in the news late last week when rumors surfaced that it would soon start accepting crypto payments on its platform because it recently put out a job advert seeking crypto experts.
But the eCom giants quickly put out a notice to deny such news. While these companies often come out to deny these rumors, these “pump” intended news is yet to impact BTC.
Bitcoin Miners Have An Underlying Intent
It isn’t unusual for long-term Bitcoin investors to acquire more of it when BTC is undergoing a market correction and low price. While BTC has been surging for the past couple of days, its long-term holders are still buying. But data from top crypto analytics firm, CryptoQuant indicate that miners aren’t doing the same.
The data reveals that Bitcoin miners aren’t buying, and they aren’t selling either. As of this writing, the miners’ position index, the MPI, (which indicates the rate at which miners are buying or selling BTC) is negative. An MPI above two will mean that miners are in a selling mood.
Another tool that confirms miners’ holding position is CryptoQuant’s miner outflows. The chart shown below proves that total miner outflows haven’t exceeded 5,000 in the last 60 days.
Bitcoin Miner Outflows. Source: Cryptoquant
It is remarkable to note that the outflows rose sharply during BTC’s peak period between April and May this year. It even crossed 15,000 on some days during that period. Miners holding on to their Bitcoin indicates their supreme confidence in the king coin. Hence, we can conclude that Bitcoin’s bullish run isn’t over yet.