Bitcoin miners are mostly active sellers in the market. They clean up part of their inventory and sell Bitcoin to exchange for legal currency to pay for daily operating expenses such as electricity bills.
However, at the moment they seem to be hoarding their newly minted bitcoins, and they have no incentive to cash it out at the current price. The decrease in the transfer of funds from miners to exchanges shows that they believe that the price of Bitcoin will be higher in the near future.
Online monitoring resource data from Glassode shows that the balance of bitcoins saved by miners has been increasing, and the number of bitcoins transferred from miners to exchanges has fallen to 49.893 btc, the lowest level in 4 months.
Glassode pointed out in Twitter that the 7-day outflow of bitcoins used by miners to exchange US dollars has just dropped to 49.893 bitcoins, a 4-month low.
In January and early February this year, miners sent a large share of Bitcoin to exchanges. In other words, there was a peak of profit taking and changing hands. However, bitcoin miners now hold their bitcoins firmly.
In addition, Glassnode’s miner position net change indicator shows a 30-day change in miner address inventory, which has been flashing green this month, which is another sign that miners are not selling cryptocurrencies.
With the accumulation of miners, Bitcoin seems to be expected to rise sharply. Historically, the decline in the outflow of miners preceded the rise in prices, although they do not necessarily mean a rebound.
Bitcoin’s performance this year has been impressive, but investors waiting to set a monthly record may be disappointed.
In the 12 years of Bitcoin’s existence, April is usually a strong month, with positive growth for 5 consecutive years since 2016. Data from the Bybt aggregator shows that Bitcoin’s April growth rate in 2021 was -7.42%, which was the worst April since 2015 , even though Bitcoin hit a record high two weeks ago.
With less than 48 hours left until May, Bitcoin was valued at $54,308 at the time of the press release.
Among the rumors that Facebook will invest in BTC, Bitcoin briefly rebounded to more than $56,000. After the social media giant released its first quarter 2021 earnings report, these rumors were shattered.
It is impossible for anyone to guess whether the reduction of funds transferred from miners to exchanges will bring about a significant price increase.
In the short term, Bitcoin must break through the market sentiment support level of $55,000. If it can cross this area, a massive surge of more than $60,000 is possible.
The original text comes from zycrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.